Tell me the General entry for provision for bad debts?
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Answer Posted / padma@mba hr
If you have a general provision you can set-off the bad debt
against that account.
If you have a specific provision, you have to see whether he
has been provided for. If thats the case you just debit that
a/c. If that debtor is not individually provided for, you
have to write it off against the P&L account.
Again, normally companies have to give the breakup of the
provisions accounts in their financials. They have to show,
1. What is the actual bad debt
2. What are the general or specific provisions made during
the year.
| Is This Answer Correct ? | 12 Yes | 6 No |
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