provision for bad debt
Sanchita Paul (student) (77 Points)
17 September 2018
provision for debt is real account or nominal account?
4 Replies
CA CS NITIN MAHAJAN
(CA )
(273 Points)
Replied 17 September 2018
Neither real nor nominal.
It is Personal
It is Personal
lokesh jain
(student)
(61 Points)
Replied 17 September 2018
no its not personal account its nominal account
Vinod Babu
(24196 Points)
Replied 17 September 2018
Bad debts are nominal accounts-where as the provision for doubtful debts is based on expectations of receivable and hence personal in nature.
lokesh jain
(student)
(61 Points)
Replied 17 September 2018
hello vinod
i would like to attention one more thing you
hoowever this provision we will make for some persons but its not person specific i.e. for eg.
we don't make provision fer bed debt for mr. ram /x/y/z
we dont know who will default in our debt
its only for our overalls expectations which may be higher or lower or may be zero also
hence this provision cant be a personal account
i would like to attention one more thing you
hoowever this provision we will make for some persons but its not person specific i.e. for eg.
we don't make provision fer bed debt for mr. ram /x/y/z
we dont know who will default in our debt
its only for our overalls expectations which may be higher or lower or may be zero also
hence this provision cant be a personal account
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