How to treat the provision for bad debts which appear on
credit side of the p&L A/c.
Answer Posted / chaitanya
Bad debts is the cause for creating provision for
baddebts,when a person feels the amount cannot be returned
then its going to be a baddebt,as a precautionary measure
he opens a provision for baddebts for fullfilling a minimum
amount with himself.so obviously we hae to show baddebts
on debit side of P&l a/c and provisions on credit side of
p&l a/c.
| Is This Answer Correct ? | 10 Yes | 15 No |
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