COST SHEET

while preparing a cost sheet , should bad debts be treated as selling and distributive overheads or is should be treated as loss and deducted from sales???

 

Rupesh

Replies (4)

Bad Debts should be disclosed in cost sheet under the head Selling and Distribution overheads

 

Hi,

there are different-2 arguments regarding the treatment of Bad debts.According to some authors it should be treated as selling and distribution exp but according to other it should not treated as selling & distribution exp.But it is better to treat the same as selling and distribution Exp.

 

Regards,

Ankit Kansal

 

 

thanks

OK

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