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what is the journal entry for bad debts?
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Answer Posted / shankar ganesh
P & L A/C DR XXXX
TO BAD DEBTS XXXX
(PROVISION FOR BAD DEBT)
BAD DEBT A/C DR XXXX
TO DEBTORS XXXX
(BAD DEBTS WRITTEN OFF) THIS IS DON FROM THE OLD PROVISION
MEANS LAST YEAR'S
IN P & L BAD DEDTS+FURTHER BAD DEBT IF ANY+NEW PROVISION
FOR BAD DEBT IF ANY-OLD PROVISION (LAST YEAR'S) WILL SHOWN
IN DEBIT SIDE. IN B/S DEBTORS-FURTHER BAD DEBTS-PROVISION
FR BAD DEBTS ON ASSET SIDE
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