Easy Office

Provision for bad debts

This query is : Open 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
01 April 2013 Dear sir
can any one help me. My problem is our company has decided to make 5% provision for bad debts on debtors. So what will be the entry. I think
Bad debt (ind.exp in Tally) Dr 25000
To prov. For bad debts (s.debtors in Tally) Cr 25000
Then later if we have identify the bad debt amount only 15000. Then the entry
Prov.for bad debt Dr 15000
To Bad debts Cr 15000.
Is it correct? If not please rectify my two entry's.
It is an urgent request. Thanks in advance.
Profile Image

Sandip R Lathiya

Profile Image

Sandip R Lathiya (Expert)
02 April 2013 Uor both entry are correct but group is provision for provision of bed debts
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
02 April 2013 Thank you sir...
Prov. For bad debt under provision, ok. If the debtors account will decrease or not?
Regards



Profile Image

Sandip R Lathiya

Profile Image

Sandip R Lathiya (Expert)
05 April 2013 No.there is not disc.
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
05 April 2013 Thank you sir.
Profile Image

C A S.S.Agarwal, M.Com.,LL.B,

Profile Image

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
21 May 2013 But in income tax no provisions are allowed to be deducted so you have to write it off but for accounting entries it is correct
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
21 May 2013 Thank you sir
When it will be write off. ie at the time of Year end closing?. or at the time of firs entry

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


Easy Office

Trending Online Classes

view all classess
CCI Pro


Answer Query



Quick Links