Banking
Partial Write-Off of Impaired Loan
Writing off the unsecured portion of a partially collateralized NPL.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Allowance for ECL (Stage 3) | Contra-Asset (-) | 40,000.00 | - |
| Loans & Advances (Partially Written Off) | Asset (-) | - | 40,000.00 |
💡 Accountant's Note
When collateral covers only part of the loan, the secured portion remains on the balance sheet while the unsecured portion is written off against the provision. This more accurately represents the recoverable amount.
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