1.What are the provisions applicable for claiming bad debts on Debtors not realizable now,against which sale is booked during previous years.
2.In last year ITR , all debtors were classified as Other (i.e not outstanding for more than one year)
3.During current year around 10% of current year Turnover is bad debts relating to sales booked during previous years.
in order to claim BAD DEBT as expense you need to written off the respective debtors balance. just written off.
bad debts a/c dr
to 'x' debtors a/c
no need to prove that debts became bad.
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Murali and Sumeet Chartered Accountant
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