Performed 50% and cancelled

[traxor]

Hello, I've been doing some work for a friend and did about fifty percent of what I was commissioned to do when they told me that they didn't want me to finish (no reflection on me, they just went for the offer of 'paying in kind' from someone else).

Does this count as a loss and, if so, how would I go about putting this in my books correctly? It was for a friend so there were no formal quotations, but if worst comes to worse, I can just write out an invoice for the 50% and put "UNPAID" can't I? I was planning on doing this anyway but the buggers backed out.

This is a bit off-topic, but at least I can gloat in the fact that I know the site they're getting won't be anywhere near as good ;-).

 

[elaine@cheapaccounting]

Have you billed them then.

 

[traxor]

They'll refuse to pay... It's not worth the hassle :-(

 

[elaine@cheapaccounting]

Nothing billed therefore no accounting entries to make.

 

[elaine@cheapaccounting]

If you had billed then then tou would have

debit debtors

credit sales

then record the bad debt

debit bad debts
credit debtors

 

[traxor]

I think your last post just destroyed a few neurons.

Thank you very much for your help.

 

[elaine@cheapaccounting]

I think your last post just destroyed a few neurons.

happy to help

 

[Strontium Dog]

(no reflection on me, they just went for the offer of 'paying in kind' from someone else).

...they're not an escort agency by any chance

 

[traxor]

...they're not an escort agency by any chance

Haha, nah. They make cakes!

 

[elaine@cheapaccounting]

Haha, nah. They make cakes!

wow payment in kind in cakes - how great is that