Accounts
This query is : Resolved
Chintan Patel
(Querist)
15 November 2011
IS RESERVE FOR BAD DEBTS AN ASSET?
Rajnish Singh
(Expert)
15 November 2011
DEAR CHINTAN ,
BAD DEBT PROVISION IS MADE FOR DOUBTFULL DEBTORS SO IT IS ALWAYS SHOWN IN LESS FROMAT FROM THE DEBTORS IN BALANCE SHEET.
BAD DEBT PROVISION IS MADE FOR DOUBTFULL DEBTORS SO IT IS ALWAYS SHOWN IN LESS FROMAT FROM THE DEBTORS IN BALANCE SHEET.
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ACMA Obulirajan R
(Expert)
15 November 2011
Provision for bad debts is a liability?
You can show either in liability side of Balance sheet or show Asset side of balance sheet by deducting Debtors..
You can show either in liability side of Balance sheet or show Asset side of balance sheet by deducting Debtors..
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CA Ravi Sisodia
(Expert)
15 November 2011
Agree with Obulirajan ji ,
Provision for bad debts is not a liability. it is just reducation in debtors. it can be show both of side of balance sheet.
Provision for bad debts is not a liability. it is just reducation in debtors. it can be show both of side of balance sheet.
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