Is this correct one?

Dear All

pls. confirm the following entries passed in Tally-

Provision made for doubtful debts (on 31st March 2014)

1) P&L Dr. 4020

To Provision for Doubtful Debts Cr. 4020

Now, on May 15th We found that our bad debts are Rs. 6010/-

2) Provision for Doubtful debts Dr. 4020

 P&L A/c Dr. 1990

To Petty Debtors A/c 6010

 

Pls. confirm whether above entries are correct or not? If no, pls pass correct entries in light of above amounts.

 

Thanks in advance

Replies (2)

above entry is correct you can give effect of AS 5 as prior period item to give effect on 13-14

your entry is correct.

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