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Answer Posted / rahul
Provision for bad debts is like a reserve created for any
specific purpose i.e.,Bad debt.It shows himself as expenses but
its a fund created to adjust the bad debts.when the
Provision is created then the entry is
Profit & Loss A/c - - - - - Dr.
To Provision for Bad Debts.
And when bad Debt is actually happen then it is adjusted
with the Provision for Bad Debt Accounts & the entry is
Provision for Bad Debts - - - - - - Dr.
To bad debt A/c
| Is This Answer Correct ? | 27 Yes | 7 No |
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