Sample Debt Set-Off and Discharge Minutes

What Are Discharge and Set-Off?

Discharge is one party "clearing" the other in terms of accounts, that is, saying "I found the accounts correct, I have no receivable/debt left". In an apartment, manager discharge is most often on the agenda: at the end of the period the accounts are examined, and if correct, the manager is discharged. Set-off is the balancing of mutual debt and receivable. This minutes documents that the account has been closed and the parties have agreed.

What Should Be in the Minutes?

• Parties and period information
• Summary of the account (debt, receivable, set-off result)
• Discharge statement (that the accounts have been accepted)
• Signatures of the parties

Copyable Discharge / Set-Off Minutes Sample (Full Text)

……………………… APARTMENT / RESIDENTIAL COMPLEX
ACCOUNT RECONCILIATION AND DISCHARGE MINUTES

Period: …/…/20… – …/…/20…

Between the management of ……………………… Apartment/Complex and the party whose signature is below, the accounts for the specified period have been examined and it has been mutually agreed as follows:

– Period-start balance: ……………… TRY
– Collected/paid: ……………… TRY
– Expenses made: ……………… TRY
– Remaining debt/receivable after set-off: ……………… TRY ……………… (does not exist / is ……………… TRY)

The parties accept that the above account is correct and complete; they declare that they ……………… (mutually discharge each other / that the remaining debt will be closed as follows) regarding the specified period. This minutes has been drawn up in two copies and signed. …/…/20…

Management (Discharging/Discharged)     Relevant Party
Name Surname – Signature           Name Surname – Signature

Filling Guide

Write the account item by item and with figures; discharge is only meaningful after the account has been examined. The manager's discharge is usually done with the auditor's report and the assembly's decision; this minutes is the written result of that process. Two copies should be prepared and the parties should keep them.

Related Processes

Discharge is the result of the audit and accountability process. We covered the auditor report in our auditor report article, the handover in our handover minutes article, and the accountability obligation in our operating book article.

Common Mistakes

• Discharge without examination: A discharge given without seeing the account is risky.
• Minutes without figures: Debt-receivable should be written item by item.
• Single copy: Two copies should be prepared and the parties should keep them.

This content and template are for information purposes only, as examples. Adapt to your specific situation.