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
CAclubindia
