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Chintan Patel

Chintan Patel (Querist)
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15 November 2011 IS RESERVE FOR BAD DEBTS AN ASSET?

Rajnish Singh

Rajnish Singh (Expert)
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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.

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ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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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..

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CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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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.

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