entry

debtors is - 25000/-

bad debts - 6000/-

provision  for baddebths  is 5000/-

how to pass the entry for above

Following are the entries:-

Debtors A/c    Dr. 25000

   To Sales A/c              25000

(Goods sold worth Rs. 25000)

Bad Debts A/c  Dr. 6000

   To Debtors A/c           6000

(Debt becomes irrecoverable, thus written off - bad debt)

Bad Debts A/c  Dr. 5000.

   To Provision for Bad debts A/c  5000

(Being provision for bad debts made)

Regards,

Devendra

IN THIS CASE PROV MAD EIN THE BOOKS LESS THAN ACTUAL , HENCE SHOULD B EXTEND TO THE AMOUNT OF ACTUAL BAD DEBTS SO ONE ENTRY REQUIRED 

BAD DEBTS A/C DR.  RS. 1000

PROV FOR B.D. CR           RS.  1000

Thanks Lokesh for correcting me...!!

Wish You happy diwali..!!have fun..!! :)