Construction
Warranty / Defect Claim Settled
Using the defects provision to pay for remedial work on a completed project during the warranty period.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Provision for Defects (Liability) | Liability (-) | 15,000.00 | - |
| Cash / Accounts Payable | Asset/Liability (-) | - | 15,000.00 |
💡 Accountant's Note
When defect costs are incurred, they are charged against the provision. No new expense is recognized — the cost was already accrued when the project was completed.
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