I require some accounting assistance.
I am doing the books of CC where the 2 members have sinced resigned.Leaving 2 remaining members. There reason for resignation was that the business was not performing at all and neither were they. However between the 2 of them they invested a sum of R400 000 over a period of 2 years. This money was used to finance the purchase of equipment used for the operating of the business.
I would like to know how i can account for this in my books.
Can I write off the members loan accounts,if so , how can this be done.
Any assistance will be greatly appreciated.