Banking

Recovery of Previously Written-Off Loan

Cash received from a borrower whose loan was fully written off in a prior period.

Account NameTypeDebit ($)Credit ($)
Cash / Customer AccountAsset (+)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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