ViveK (.) (312 Points)
06 April 2010
hi all
what is the treatment of provision of doubtful debts shown in adjustments
language is "debtors includes Rs 120000 due for more than 6 months out of which provision has been made for doubtful debts at Rs 20000 during year
my question is
i have seen a solved problem(company final accounts padhuka's book) and in that problem doubtful debts are not subtracted from debtors(shown in adjustment) in balance sheet but are charged in p&l account even though it tallied
Ronak Choudhary
(CA Final Article)
(130 Points)
Replied 06 April 2010
since the provision is already made, there is no need for debiting it to the pl again..
also, it might not hav been deducted from drs bt might hav been shown as provision...
ViveK
(.)
(312 Points)
Replied 06 April 2010
yea well it was in adjustments and it is debited to p&l but is not subtracted from debtors there are 2 questions of this type in padukas book and rest of the information is derived from trail balance(tallied)
ViveK
(.)
(312 Points)
Replied 06 April 2010
its not shown as provision neither it is deducted from debtors
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
