Investment dictionary

DANGLING DEBIT

Dangling Debit: translation

A debit entry with no offsetting credit entry. Dangling debit occurs when a company purchases goodwill or services to create a debit. When adding the journal entry to financial statements a corresponding credit balance is not reported and cannot be written off. Dangling debit can be received when a company is acquired but is not recorded on the balance sheet.

When a company purchases goodwill, the company will receive a debit entry on its financial statements, but no entry is entered on the credit side and therefore a dangling debit is created. When a company uses dangling debit in their financial statements, it is offset by affecting the equity of the company by being listed as deductions or negative reserves.

  1. dangling debit—учет брит. свободное дебетованиеu метод учета при котором деловая репутация фирмы не отражается как актив а учитывается на пассивном счете и вычитается из величины акцион...Англо-русский экономический словарь