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Bad debts recovered
Accountancy
In the question attached below, for the BAD DEBTS OF PREVIOUS YEAR RECOVERED, they have did 2 things(which I highlighted) 1-Added the amt.(bad debts recovered) as pre-incorporation income 2- Added that amt. to current year's bad debts and collectively they have been deducted on sales ratio. Here, why they have done the thing which I have mentioned in point 2. I could understand the logic of point 1 but I couldn't understand the point 2. Can you please explain in detail.
Answers (13)
KESHAV TOSHNIWAL
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Sorry bro.... Still I can't understand.... Only 91000 is current year's bad debts... right?
KESHAV TOSHNIWAL
Let me know if you have understood
Bro, what is the difference between these two terms (which I marked)
Thread Starter
ALDRIN GBro, what is the difference between these two terms (which I marked)
91000 bad debts are gross bad debts n 98k bad debt are net bad debts
KESHAV TOSHNIWAL
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Thanks bro.... Fr spending ur time clearing my doubts..... The point is, it is our accountant's mistake...... That only confused me..... Now clear.....
Thread Starter
ALDRIN GThanks bro.... Fr spending ur time clearing my doubts..... The point is, it is our accountant's mistake...... That only confused me..... Now clear.....
Best luck for your exams (I Think u r giving may 22 right)
KESHAV TOSHNIWAL
Best luck for your exams (I Think u r giving may 22 right)
No.... Dec 21..... ie, next week exam
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