A self-employed person formed a partnership with their friend during a financial year.
In a process self-employed person's telephone bill was credited by their supplier by £16.31 but because newly formed partnership took over phone line, the credit was never applied to self-employed person's telephone account but rather to partnership's telephone account (no actual money was involved).
At the end of financial year there is -£16.31 in self-employed person's Purchase Ledger.
I am confused as I don't know how to "get rid" of it. And if I don't "get rid" of it, it will carry on year after year sitting there in Purchase Ledger.
Why don't you just post an invoice to the self employed persons purchase ledger to clear it. Then I suppose he could also send a sales invoice for telephone services to the partnership, though not sure I'd bother over 16 quid.
