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Receipt of Legal Settlement (Gain)
Recording cash received from winning a lawsuit against a competitor.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset (+) | 25,000.00 | - |
| Other Income (Legal Settlement) | Revenue (+) | - | 25,000.00 |
💡 Accountant's Note
Accounting is conservative: you record legal liabilities early (provisions), but you only record legal gains when the cash is virtually certain or received.
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