Please let me know
:
1)a)what entries are passed when provision is made for debtors
b)how the entries in question 1(a) are reflected in final statement.
2)a)what entries are passed when debt written off after making provision
b)how the above entries in question 2(a) are reflected in final statments of accounts.
Please answer all questions SEPARATELY
Thanks
1) a) P & L A/c Dr
To Provision for Bad & Doubtful Debts
b) Provision amount debited in P & L A/c. Balance in Provision A/c shown under Provision & Liabiltiy in B/S
2) a) Provision for Bad & Doubtful Debts A/c Dr
To Bad Debts A/c
b) Bad Debts amount deducted from Debtors balance in balance sheet. Balance in Provision A/c shown under Provision & Liabiltiy in B/S
Profit and loss a/c DR.
To Provision for doubtful debts
(provision made)
Provision for doubtful debts Dr
To Debtors
(actual write off)
Profit and loss a/c DR
(bad debts write off)
To Profit & loss a/c
(reversal opf provision
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