The statute of limitations for a mutual account begins to run on the date of the last item thereof. A mutual account must include an indebtedness on both sides. Mere entries of credits of partial payments shall not be sufficient.
§ 9-3-7.When mutual accounts postpone running of limitations
Chapter 3. Limitations of Actions · Article 1. General Provisions · Last amended 1933 · Last verified July 17, 2026
In one sentenceO.C.G.A. § 9-3-7 starts the limitations clock on a mutual account, one showing indebtedness running both ways between the parties, from the date of its last entry, but makes clear that mere partial-payment credits alone are not enough to turn an ordinary one-sided debt into a mutual account.
Full Text of § 9-3-7
Plain-English Summary
Some running accounts between two parties owe money back and forth over time rather than flowing in one direction. O.C.G.A. § 9-3-7 treats that kind of mutual account as a single unit for limitations purposes: the clock starts on the date of the account’s last item, not on the date of each individual charge along the way. That matters because it can keep an older entry within the limitations period as long as the account, as a whole, stayed active up to that final entry.
Getting that treatment requires more than a running tab with occasional payments. The statute defines a mutual account as one that includes an indebtedness on both sides — both parties, at different points, owing the other something. An account where one party keeps piling up charges and the other makes periodic payments against that balance does not qualify. The statute says so directly: mere entries of credits of partial payments are not enough.
The distinction guards against stretching the limitations period by pointing to routine payment records. Without indebtedness running both ways, a party cannot extend a stale one-sided debt’s life by treating scattered partial payments as though they were part of a mutual account.
Frequently Asked Questions
When does the limitations period begin running on a mutual account?
On the date of the last item entered on the account.
What makes an account “mutual” for purposes of this statute?
The account must include an indebtedness on both sides — both parties owing the other something at different points, not just one party owing a balance.
Can a series of partial payments alone convert an ordinary one-sided debt into a mutual account?
No. The statute states directly that mere entries of credits of partial payments are not sufficient.
Why does the date of the last item matter instead of the date of each individual charge?
Because the statute measures the limitations period for a mutual account from the date of its last item, treating the whole running account as one unit rather than dating each entry separately.
Does this section apply to every running account between two parties?
Only to one that qualifies as mutual by including indebtedness on both sides — an account that is one-sided, with payments merely credited against it, falls outside the rule.
Amendment History
Civil Code 1895, § 3769; Civil Code 1910, § 4363; Code 1933, § 3-707.
Source & verification. Section text and amendment history are
reproduced verbatim from the Official Code of Georgia Annotated, published by the
Official Code of Georgia Annotated, Georgia Code Revision Commission / LexisNexis. Last verified July 17, 2026.
· Official source
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