Both are same. when u feel that the debts are doubtful then u create a provision . If the bad debts are confirmed then write off the bad debts.

Usually it says, provision for bad and doubtful debt...

both are same !!! a provision for debt that one feels is irrecoverable or partly recoverable....

I agree vth rakesh....
 

Both are one and the same thing

I agree with Bhaskar, Both the terms are generally spoken, Otherwise the specific term should Provision for bad &doubtful debts.

Provision is not created on bad debts, instead, they are written off straight.

Ofcourse that can be routed through Provision too

both are same....provision is created for doubtful debts....there is no use of creating provision for the debts which are already bad.......jus written off ......it is usually called as provision for bad and doubtful debts

Thank u all

But I am having 1 doubt still left

Suppose A Ltd closes its accounts on 31st march and on 10th april a bad debt arise and the acccounts are approved (in board meeting) on 20th april.

Now, i think as per AS-4 they will have to create a Provision for BAD debts rather than doubtfull 

And the difference lies here,

What say?????????

When those bad debts pertain to that particular period it would be reasonable to write off such to the respective p&l a/c as mere bad debts..

But since those were given the confirmation of being bad on some date after the completion of financial yr.

and they are clearly bad but not doubtful regarding payment anymore.....

It would be prudent to make a provision for such debt as being bad..

Hope i gave an apt soln...

HI Rahul

Bad Debts and Doubtful Debts r Not the SAme Thing...

Although In schools u learn they r same..

Doutful debtss- it means the money which may or may not be recived in future(means doubtfull)

Bad Debts- It means when u are sure tht now u will not gonna to recieve money in future.. (i.e.-money lost)

Treatment- we make provsions only for doutfull debts but not for the bad debts bcz bad debts r our loss n show inthe profit and loss account..

bcz as per prudent we make provision for seen future liabilty

I AGREE WITH "NEERAJ SHARMA"...................It is 100% right answer.