Provision for doubtful debt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2013 End Of the year, say 2012 we create bad debt provision in this manner

1.) Doubtful Debts dr
To Debtors a/c Cr.

2. Bad Debts A/c
To Provision for Bad Doubtful A/c

In the same year, we transfer the provision created for earlier years upto 2009

Provision for Bad Doubtful a/c
To Doubtful Debt

So basically we are first creating provision and it is fully written off in subsequent years.

So if someone is questioning which year loss is written off, will it be 2009 or 2012

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2013 Please advise

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