Payments · Level: Exam
Journal entry: Part payment from a customer
The customer pays only part of the invoice. Only the amount paid is booked; the rest stays as a receivable.
Worked example
Walker & Co pays £6,400.00 by bank transfer as a part payment of our invoice for £22,800.00.
Correct journal entry
Bank £6,400.00 / Trade receivables £6,400.00
Debit
Bank£6,400.00
Credit
Trade receivables£6,400.00
Why?
- Bank: asset increases → debit
- Trade receivables: asset decreases → credit
Calculation
- Only the amount paid is booked; the rest stays open as a receivable.
Typical mistake
Clearing the whole receivable although only part was paid.
Your turn
Three problems on exactly this case, with different numbers. Amounts work with or without separators, e.g. 2,400.00 or 2400.
Transaction
Hall Builders pays £1,000.00 by bank transfer as a part payment of our invoice for £7,680.00.
Debit
Assets up · expenses · liabilities down
Total debit£0.00
Credit
Liabilities up · income · assets down
Total credit£0.00
Frequently asked questions
What is the journal entry for part payment from a customer?
Example: Bank £6,400.00 / Trade receivables £6,400.00.
How do I recognise this case?
The customer pays only part of the invoice. Only the amount paid is booked; the rest stays as a receivable.
What is the typical mistake?
Clearing the whole receivable although only part was paid.