How would this adj be treated ?
Bad debts recovered amt to rs.50000 whc belongs to sales made pre incorporation, has been deducted from bad debts
Bad debts =rs. 100,000( p&l a/c )
Sunil Ahmad
(Student)
(1511 Points)
Replied 02 December 2017
satish
(teaching)
(2046 Points)
Replied 15 December 2017
1. Bad debts recovered amount is Income. Bad debts (loss) was debited to profit and loss a/c during pre-incorporation period.
So Bad debts recovered to be consider as Pre-incorporation Income.
2. Bad debts is the loss which are directly related with sales. so this loss is to be apportioned to pre and post incorporation period in sales ratio.
Kushal Kumar
(3 Points)
Replied 28 February 2020
How to treat income in Pre and Post incorporation like intrest on investments or any income
Rustam Baisla Gujjar
(4 Points)
Replied 22 December 2020
WHAT IS COST OF ASSETS, THE PRICE OF PURCHASE ASSETS WITH ALL EXPENSES UP TO START USE BUT IF RECEIVED THE A SEPARATE INVOICE OF EXPENSES OF DURING THE PURCHASED ASSETS SO HOW CAN WE CREATE ENTRY THEN WE CAN SEE THE COST OF ASSETS.
satish
(teaching)
(2046 Points)
Replied 22 December 2020
abhishek vulchi
(2 Points)
Replied 02 November 2022
How do we treat provision for bad debts in pre and post incorporation ??
Yasaswi Gomes new
(Finance )
(4474 Points)
Replied 02 November 2022
There is no treatment for pre. Only post incorporation accounting is available. However by using accoubting conventions, you can transfer a pro ision from pre to post
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