Doubt

Becoz trade receivable is an income then show in the balance sheet and bad debts is losss then it will shown in the profit and loss a/c...

Aishwarya Sharma

CA Foundation

★ 5

08-Nov-20 20:37

But Bad debts A/c Dr. To debtor or trade receivables account At end of year Profit and loss account dr. To bad debt account So even in the first entry it self we have credited trade receivables so there amount must be deducted that's what I am trying to understand even when I created the trade receivables account I found out that trade receivables must be reduced but sir did not that is what I am trying to understand

Thread Starter

Nilesh Malviya

CA Inter

★ 655

08-Nov-20 21:02

when the bad debt is given in trail balance it means this is already deducted from the trade recievable .. so it only have one adjustment entry in p&l

Abhishek Verma

CA Inter

★ 7K+

09-Nov-20 15:41

When a bad debt happens, Bad debt a/c dr To Account Receivable (If given in trial balance, this entry is already passed. This also means that the bad debt is already deducted from the debtor balance)

CA Suraj Lakhotia

Admin

09-Nov-20 18:16

Ok sir

Thread Starter

Nilesh Malviya

CA Inter

★ 655

09-Nov-20 19:28

OK sir

Aakanksha Ramesh Kumar

CA Inter

★ 2K+

12-Nov-20 12:43