Entry for provision for bad debts
This query is : Resolved
Naveen Tantry
(Querist)
22 April 2014
Is the below entry correct, when there is a provision created for Debtors
P&L a\c......DR
To Provision for Debtors
(Being provision made)
since Provision for Debtors is a contra asset, it will be maintained in liability side.
22 April 2014
Dear Naveen,
Yes entry is correct and the amount is deducted from debtors in financials as below:
Trade receivables
(Unsecured considered good, unless otherwise stated)
Outstanding for a period exceeding six months from the date they are due for payment
- considered good xxx
- considered doubtful xxx
Outstanding for a period less then six months from the date they are due for payment
- considered good xxx
- considered doubtful xxx
Less: Prov. for doubtful debts xxx
Yes entry is correct and the amount is deducted from debtors in financials as below:
Trade receivables
(Unsecured considered good, unless otherwise stated)
Outstanding for a period exceeding six months from the date they are due for payment
- considered good xxx
- considered doubtful xxx
Outstanding for a period less then six months from the date they are due for payment
- considered good xxx
- considered doubtful xxx
Less: Prov. for doubtful debts xxx
Rupesh Jain
(Expert)
22 April 2014
yes reply give by Ramesh is correct
our provision you may pass to set the entry
provision for doubtful debt a/c dr.
to Debtors a/c
with amount of write off.
our provision you may pass to set the entry
provision for doubtful debt a/c dr.
to Debtors a/c
with amount of write off.
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