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
Rupesh Maheshwari (ACA, Dip. IFR (ACCA)) (6166 Points)
06 June 2008while 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
Vikas Agarwal
(C.A)
(20 Points)
Replied 06 June 2008
Bad Debts should be disclosed in cost sheet under the head Selling and Distribution overheads
Ankit kansal
(Professional)
(43 Points)
Replied 06 June 2008
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
CAclubindia
