So we credit cash (Reduce Cash) and debit the payable but what do we do with the balance $30,000? This liability is gone because both parties agreed and signed off. Where does this get written to? Thanks for your assistance© BrainMass Inc. brainmass.com June 4, 2020, 12:42 am ad1c9bdddf
Since you settled your debt and was "forgiven" of the balance, this effectively moves to increase your capital ...
This solution helps answer a problem regarding notes payable.