Banking
Loan Write-Off — Fully Impaired
Writing off a loan that is 100% provisioned and deemed unrecoverable.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| 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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