Bad Debt Provision

i think,,,,,,,

Bad Debt Provision is personal a/c

Trial Balance                                                                       dr                                                                            cr

Bad debts                                                                            3900

Sundry debtors                                                                 45000   

Provision for bad & doubtful debts                                                                                                          4500

Adj.

Write off futher bad debts Rs. 1000

Provide for bad & doubtful debts @ 5%

Journal entry                                                                     dr                                                                            cr

Bad debts a/c                                                                    1000

                To sundry debtors a/c                                                                                                                    1000

Provision for bad & doubtful debts                          4900

                To bad debts                                                                                                                                      4900

P/L                                                                                                                                                                                                                                                                                                                                2600

                To provision for bad debts                                                                                                           2600

bad debt provision is a valuation a/c not personal a/c. the other name valuation a/c is contra asset a/c.

agree with a.jian

bad debt provision is a personal account

bad debts is a nominal account

what should be the netries for FD get matured & the same is renewed Pricipal+interest