To produce a true and fair view, modern accountancy practice requires that the write-back of trade debt must always be credited to the profit and loss account. Our view is that the trading profits chargeable to tax should include the credit to the profit and loss account of a trade debt write back.
You should not make a computational adjustment to the accounts of a trade, profession or vocation which show a credit to the profit and loss account for trade debt written-back unless the debt is released as part of a voluntary arrangement (see BIM42701).
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