Provision for bad debts

om prakash (na) (39 Points)

11 July 2013

HI Experts

Please confirm me in which head we should open Provision for Bad Debts .for example Bad debts opened in Indirect expenses

and in Balance sheet where we show the provision ie under Liablity or Assets

Thanks

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5 Replies

CA CS Roshan Begrajka (Chartered Accountants) (267 Points)
Replied 12 July 2013

provision for bad debts is shown under liability. In schedule VI it shown under provision.

now the question arise whether it is short term provision/long term provision it depends on the nature i.e. days,yrs etc.

if the provision made for more than one yr then shown under long term provision otherwise shown under short term provision.

Bhaavna (Queen ) (1933 Points)
Replied 12 July 2013

Originally posted by : Roshan Begrajka
	provision for bad debts is shown under liability. In schedule VI it shown under provision. now the question arise whether it is short term provision/long term provision it depends on the nature i.e. days,yrs etc. if the provision made for more than one yr then shown under long term provision otherwise shown under short term provision.

CA Rohit Maurya (Associate) (213 Points)
Replied 12 July 2013

Originally posted by : Roshan Begrajka
	provision for bad debts is shown under liability. In schedule VI it shown under provision. now the question arise whether it is short term provision/long term provision it depends on the nature i.e. days,yrs etc. if the provision made for more than one yr then shown under long term provision otherwise shown under short term provision.

CORRECT.

CA Chandresh Jain (ca) (71 Points)
Replied 12 July 2013

Current liability

C.A. Jignesh N. Mehta (C.A.) (1030 Points)
Replied 13 July 2013

Trade receivables

Particulars	As at 31 March, 2013	As at 31 March, 2012
	`	`
Trade receivables outstanding for a period exceeding six months from the date they were due for payment #
Secured, considered good
Unsecured, considered good
Doubtful

Less: Provision for doubtful trade receivables

Other Trade receivables
Secured, considered good
Unsecured, considered good
Doubtful

Less: Provision for doubtful trade receivables


Total