Just after a little advice please. A client of mine has recieved an over payment for a sales invoice. In the meantime the company who as over paid has gone into liquidation, can the money still be refunded or if not how should this be recorded?
Will be up to the liquidator whether they want to recover it. Which will depend on the cost and effort to recover, the amount involved and whether they know it has been overpaid.
I would be inclined just to leave it as a liability for a year after the company has been formally liquidated and then write the income back to the P&L account if has been recovered.
