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Journal entryIntermediatePublished

Question · Write-off of an uncollectable financial asset

Orion SA finds that there is no longer a reasonable expectation of recovering a loan measured at amortised cost, whose gross carrying amount is 80,000 and which is fully covered by a loss allowance of 80,000. Record the write-off entry.

Gross carrying amount of the loan
80,000
Loss allowance recognised
80,000
Your answer
  1. Line 1

    Account Loss allowance

  2. Line 2

    Account Loan at amortised cost (gross)

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