Banking

Loan Write-Off — Fully Impaired

Writing off a loan that is 100% provisioned and deemed unrecoverable.

Account NameTypeDebit ($)Credit ($)
Allowance for ECL (Stage 3)Contra-Asset (-)100,000.00-
Loans & Advances (Written Off)Asset (-)-100,000.00

💡 Accountant's Note

A write-off removes the loan from both the gross asset and its matching provision. It has NO impact on the P&L (because the provision was already charged). It is purely a balance sheet clean-up entry. Recovery attempts continue after write-off.

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