Construction
Subcontractor Termination Costs
Recording costs associated with terminating a non-performing subcontractor mid-contract.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Subcontractor Termination Expense | Expense (+) | 25,000.00 | - |
| Cash / Accounts Payable | Asset/Liability (-) | - | 25,000.00 |
💡 Accountant's Note
Termination costs — including demobilization, settlement of unpaid work, and costs to complete the works using an alternative subcontractor — are expensed as they represent an inefficiency loss rather than a productive cost.
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