Cash flow statement.


HIMANSHI SINGH   09 December 2019

HIMANSHI SINGH

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If provision for bad debts is given in the liability side of balance sheet, what will be the treatment of provision in cash flow statement?

Ravi Duseja (Article)     10 December 2019

Ravi Duseja
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Since Provision for bad Debts is non cash item no adjustmemt in cash flow is required.

In Case Current Yeay any Provisiom is done for debtors as doubtfull, same should be adjusted in working capital to ensure cash collection from debtors is not inflated due to this adjustments.


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