Final accounts
This query is : Resolved
29 August 2013
If a business already have Provision for doubtful debts 51000 and during the year business have Bad debts 10000 .
Now what to do ??
I want to know that as we make provision against doubtful debts and if bad debts occured , then wht should be done with the old provision and if we want to create a new provision then what to do ??
Give reasons ??
Now what to do ??
I want to know that as we make provision against doubtful debts and if bad debts occured , then wht should be done with the old provision and if we want to create a new provision then what to do ??
Give reasons ??
30 August 2013
I explain u with the help of entries:-
When u made entry for making provision:
Bad debts A/c Dr. 51000
To Provision for Doubtful debt 51000
When actual bad debt occured:
Provision for D.B Dr. 10000
To Debtor 10000
and if the total bad debt is only 10000 then:
Provision for D.B. Dr. 41000
To Bad debt recovered 41000
and if u think that there are still chances of bad debt then don't write back provision it will appear in liability side amounting to Rs.41000.
When u made entry for making provision:
Bad debts A/c Dr. 51000
To Provision for Doubtful debt 51000
When actual bad debt occured:
Provision for D.B Dr. 10000
To Debtor 10000
and if the total bad debt is only 10000 then:
Provision for D.B. Dr. 41000
To Bad debt recovered 41000
and if u think that there are still chances of bad debt then don't write back provision it will appear in liability side amounting to Rs.41000.
30 August 2013
but entry for provision is :-
p and L a/c dr.
to provision ??????
p and L a/c dr.
to provision ??????
05 September 2013
Both
P & L a/c dr.
To provision
and
Bad debt
To provision
are same entry the only diff is that the above entry is direct. In the second entry what will happen that the bad debt a/c will be closed by p& L a/c. Entry:
P& L Dr.
To bad Debt A/c
P & L a/c dr.
To provision
and
Bad debt
To provision
are same entry the only diff is that the above entry is direct. In the second entry what will happen that the bad debt a/c will be closed by p& L a/c. Entry:
P& L Dr.
To bad Debt A/c
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
