Related to bad debt

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2013 If we provide Bad debt reserve last year for some doubtful debtor but in this year debtors are recovered. so what entry would be passed?

We passed entry in last year
P&L Dr
To Bad debt provision

And what entry should be made in this year if there is all such debtor become good?

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

19 July 2013 Let me tell you this is not bad debts provided entry you have passed was bad debts writtend off

Provision:

Dr.Prov. for bad debt A/c
Cr. Debtors A/c

Written off:
Dr.P&L A/c
Cr.Prov. for baddebt A/c

In your case Bad debts recovered after written off Suggested entry will be:-

1) Dr.Cash A/c
Cr.Bad debts recovered A/c

(Being Bad debts recovered)

2)Dr.Bad debts recovered A/c
Cr.P&L A/c
(Being bad debts recovered transferred to profit and loss account)

Thanks & regards
Ganesh babu k

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