Definition
The term acquittance refers to a document that provides evidence the debt of a borrower has been extinguished. The most common example of an acquittance is a receipt stating a debt obligation has been paid in full.
Explanation
An acquittance is a written document that states a debtor has been released from any obligation to a creditor. An acquittance may be issued after the debt has been repaid in-full, or as part of a transaction that releases the borrower from the obligation to repay a debt. For example, a lender may issue an acquittance when a borrower pays off their mortgage.
While the most common example of an acquittance is a receipt, a borrower may receive a receipt after making partial payment on a loan. A receipt of this type is known as an acquittance pro tanto.
Related Terms
Also referred to as "receivables," this is the accounting term used to describe claims the company has against others for goods, services, or money. Accounts receivable are usually non-written promises to pay for goods or services received but not yet paid for by a customer.
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