Why bad debt recovery has double effect?
Please elaborate
Rinuja TK
CA Inter
★ 10K+
04-Jun-22 20:29
949
Answers (2)
Best Answer
Bad debts recovery is not related to this year so we shouldn't deduct them from bad debt and As the bad debt are recovered they are recovered from PY debtors it's a income so it should be shown as income and it is pre incorporation only
Harish Kumar
CA Inter
★ 17K+
05-Jun-22 18:22
In question they have deducted bad debt recovery from bad debt directly which has no proper apportionment btw pre and post .so they added with bad debt and shown as separate item as income .
