BED DEBTS

is it BAD debts or BED debts

Hello Sandeep ji,

Entry for Bad Debts:  Bad Debts A/c      Dr.

                                               To Debtors A/c

                                     (being bad debts written off) 

At the year end: P & L A/c    Dr.

                                  To Bad Debts A/c

                             (being amt. transferred)

Bad debts do not appear under any head as these are items of P&L A/c and not of BALANCE SHEET. If you were asking for Debtors they appear under head Current Assets, Loans & advances.

Bad debts does not cime under any head,

it is debited to P/L acc. & deducted from the debtorsamount

Originally posted by : Nitin Singhal
	Hello Sandeep ji, Entry for Bad Debts:  Bad Debts A/c      Dr.                                                To Debtors A/c                                      (being bad debts written off)  At the year end: P & L A/c    Dr.                                   To Bad Debts A/c                              (being amt. transferred)   Bad debts do not appear under any head as these are items of P&L A/c and not of BALANCE SHEET. If you were asking for Debtors they appear under head Current Assets, Loans & advances.t

he is right

Bad debts is a loss for the Company therefore it is debited to P&L A\c and deducted from Debtors.

Entry for bad debts in books :                                                                                                                            

Bad debts A/c  -Dr.   

      To Debtors A/c

(being bad debts written off)

At the end of the year , the entry will be:

P&L A/c -Dr.

     To Bad debts A/c

(being amount transferred)

Bad debts don't appear under any head as this is the item of Profit and loss A/c not Balance sheet.

bad debts are already adjusted in the net profit derived from P&L A/c which is included in the calculation of closing capital.

And debtors is shown on head "Current assets and loans & advances" on the assets side , after  deducting this bad debts.