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Preparation of final accounts of sole proprietors
Accountancy
Please explain this What is the effect of this particular
Answers (13)
In 1997, we have written of the bad debt of some amount which just like a expenditure for us and that amount is debited in the profit and loss account. But the amount of Rs.6,000 which is written off 1997 is received from him in 1999. Now there is no bad debt for that account, so RS. 6,000 is a income for us in 1999 which should be credited to the profit and loss account. Excluding that Rs.6,000 recovered, the total amount which we have written off to the profit and loss account in some previous years is Rs.14,000.
Vijay K
In 1997, we have written of the bad debt of some amount which just like a expenditure for us and that amount is debited in the profit and loss account. But the amount of Rs.6,000 which is written off 1997 is received from him in 1999. Now there is no bad debt for that account, so RS. 6,000 is a income for us in 1999 which should be credited to the profit and loss account. Excluding that Rs.6,000 recovered, the total amount which we have written off to the profit and loss account in some previous years is Rs.14,000.
Means In Balance sheet Liability. Amt Assets. Amt Debtors. XXXX - bad debts 14000 In profit and loss a/c Particular. Amt. Particular. Amt Bad debts. 14000 Am I right or wrong?
Thread Starter
Sejal ShivaniMeans In Balance sheet Liability. Amt Assets. Amt Debtors. XXXX - bad debts 14000 In profit and loss a/c Particular. Amt. Particular. Amt Bad debts. 14000 Am I right or wrong?
Balance sheet is right bro. But that 14,000 is the amount which is already written off in the previous years.
Vijay K
Balance sheet is right bro. But that 14,000 is the amount which is already written off in the previous years.
In trial balance as on 31st December 1999 bad debts written off 14000 this amount for 1999. So this amount debited in profit and loss account
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