banner_ad

BED DEBTS

Accounting Entries 3271 views 6 replies

PLEASE ADVISE ME WHATS THE BAD DEBTS ENTRY IN ACCOUNTS BED DABTS SHOW ON WHICH HEAD PLZ URGENT

Replies (6)

is it BAD debts or BED debts

Hello Sandeep ji,

Entry for Bad Debts:  Bad Debts A/c      Dr.

                                               To Debtors A/c

                                     (being bad debts written off) 

At the year end: P & L A/c    Dr.

                                  To Bad Debts A/c

                             (being amt. transferred)

 

Bad debts do not appear under any head as these are items of P&L A/c and not of BALANCE SHEET. If you were asking for Debtors they appear under head Current Assets, Loans & advances.

Bad debts does not cime under any head,

it is debited to P/L acc. & deducted from the debtorsamount

Originally posted by : Nitin Singhal


Hello Sandeep ji,

Entry for Bad Debts:  Bad Debts A/c      Dr.

                                               To Debtors A/c

                                     (being bad debts written off) 

At the year end: P & L A/c    Dr.

                                  To Bad Debts A/c

                             (being amt. transferred)

 

Bad debts do not appear under any head as these are items of P&L A/c and not of BALANCE SHEET. If you were asking for Debtors they appear under head Current Assets, Loans & advances.t

he is right

Bad debts is a loss for the Company therefore it is debited to P&L A\c and deducted from Debtors.

Entry for bad debts in books :                                                                                                                            

Bad debts A/c  -Dr.   

      To Debtors A/c

(being bad debts written off)

 

At the end of the year , the entry will be:

P&L A/c -Dr.

     To Bad debts A/c

(being amount transferred)

Bad debts don't appear under any head as this is the item of Profit and loss A/c not Balance sheet.

bad debts are already adjusted in the net profit derived from P&L A/c which is included in the calculation of closing capital.

And debtors is shown on head "Current assets and loans & advances" on the assets side , after  deducting this bad debts.

:)


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details