bad debts and provision for baddebts
This query is : Resolved
harish babu
(Querist)
24 January 2009
hello everyone
what is the diffrence between baddebts and provision for bad debts and why provision for baddebts will be created and what are the relevent entries when badebts were incurred
what is the diffrence between baddebts and provision for bad debts and why provision for baddebts will be created and what are the relevent entries when badebts were incurred
CA. B.SRINIVASULU
(Expert)
26 January 2009
The confirmed loss due to non realisation of debtors is called as bad debts.
Anticipating loss but not yet confirmed that the debtor will not pay, then we will provide for provision for bad debts.
Profit and loss account Dr
To provision for bad debts
(for provision)
Bad debts
To provision for bad debts
( when loss is incurred)
Anticipating loss but not yet confirmed that the debtor will not pay, then we will provide for provision for bad debts.
Profit and loss account Dr
To provision for bad debts
(for provision)
Bad debts
To provision for bad debts
( when loss is incurred)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Equity Share Sale and Purchase
- Whether output tax is taken credit by purchaser
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
