Hello just starting a course level icb 1 and came accross an account i had to close but has money outstanding cant find how to write this! mr 1 bought goods for £2000 on credit on jan 1st, then pays £1000 on 15th jan. leaves £1000 outstanding how do i close this ?? DOUBLE ENTRY HELP!! sorry to shout. Please any help advice would be good Thanks Kate
Explain more about why you need to "close the account" Creditors will show an outstanding balance of £1000 but this account will balance when he pays the outstanding amount
As mentioed above the account wont balance until the remainder is paid. Should this not have been paid when doing the accounts, it goes in as a credit balance in your trial balance. It will then be shown on your balance sheet. It is not an account that you can transfer to your profit and loss.
