Banking
Recovery of Previously Written-Off Loan
Cash received from a borrower whose loan was fully written off in a prior period.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Customer Account | Asset (+) | 15,000.00 | - |
| Recovery of Bad Debts (Income) | Revenue (+) | - | 15,000.00 |
💡 Accountant's Note
Recoveries on written-off loans are recognized as income when cash is received. Banks maintain 'shadow records' of written-off loans and continue pursuing recovery through legal channels and debt collectors.
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