In the P and L A/C calculate the percentage mentioned for provision for doubtful debts on sundry debtors and write the amount. This will be your new provision
In the P and L A/C calculate the percentage mentioned for provision for doubtful debts on sundry debtors and write the amount. This will be your new...
Bad debts is a sure loss, irrecoverable on a given date and is written off from the trade debtors. an over aged debtors usually turn out to be bad debtors. provision for doubtful debts is created...
The double entry for recording provision for doubtful debt is: Dr. Doubtful Debts (P&L expense a/c) xxx Cr. Provision for Doubtful debt xxx Once it is certain that the debt has gone bad debt;...
This is a very important part of: Cash flow predictions and being able to pay bills Planning for profit and loss Paying taxes and declaring profits, or not.