One of our directors is owed money by the company, but he is happy to ‘donate’ the debt to the company. He expects nothing in return, so it’s not a ‘debt to equity’ issue. Does anyone have any bright ideas as to how we should deal with this in Quickfile? Currently the money is logged as a Prepayment (the director is also a client).
Thanks
Hi,
I might be able to help with the double entry for this.
I’m guessing that because the money is logged as a pre-payment, it will have been entered initially into QF as a bank receipt tagged to prepayments.
Say it is £250, then the double entry in QF, at that time, would have looked like this:
If the customer (director) wants to ‘donate’, then I would move that money out of Prepayments and into Misc Income.
You’d have to create a new journal and this would be the double entry:
That’s how I would do it.
Hope this helps 
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