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?
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?
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
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
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