Credit provision

Credit provision for bad debts is the credit balance in the provision for bad debts account. Deduct it from Debtors balance and show debtors net.

Sudha Reddy

CA Final

★ 20K+

26-May-20 08:26

Is there any journal entry for it so I can understand more clearly

Thread Starter

lithish kumar

CA Final

★ 3K+

26-May-20 08:32

Balance in PBD should be reduced from Debtors in the Balance sheet Creating Provision (P&L Dr. To PBD) Bad Debt written off (Bad Debt expense A./c Dr. To Debtor A/c) Amount transferred from PBD (PBD A/c Dr. To P&L A/c) Balance in PBD will be reduced from Debtors in the balance sheet

Sudha Reddy

CA Final

★ 20K+

26-May-20 10:23

Will credit PBD appear in credit side of P&L

Thread Starter

lithish kumar

CA Final

★ 3K+

26-May-20 10:47

No it doesn't appear in credit side of p&l PBD means it a future expense so it appears in debit side of p&l If PBD is recovered then recovered amount will appear in credit side of p&l Journal entry PBD RECOVERED A/C DR TO P&L A/C

sai t

CA Foundation

★ 2K+

26-May-20 11:01

PBD is a provision. It is reduced from Debtors in Balance sheet. If PBD balance is more than required then the excess is credited to P&L.

Sudha Reddy

CA Final

★ 20K+

28-May-20 08:25