IndigoLearn

Forums

Doubt

Look a the question image where I tick marked my one and only doubt is that when bad debt is written why we did not deduct from trade receivables that 5000 amt as also no provision is there

Attachments

IMG_20201108_200330.jpg

IMG_20201108_200345.jpg


Nilesh Malviya

Nilesh Malviya

CS Executive

650

08-Nov-20 20:07

71

Answers (6)

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

Aishwarya Sharma

CA Foundation

5

08-Nov-20 20:37

Aishwarya Sharma

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...

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

Nilesh Malviya

CS Executive

650

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

Abhishek Verma

CA Inter

3K+

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)


Suraj Lakhotia

Suraj Lakhotia

Admin

09-Nov-20 18:16

Ok sir


Thread Starter

Nilesh Malviya

Nilesh Malviya

CS Executive

650

09-Nov-20 19:28

Dusherra Offer
Inter Testimonials
Testimonials CA Foundation July 21