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Provision for doubtful debts
Accountancy
In the image, 1st question, 7th sub division, what is the amount of provision that should be transferred to P/L account?
Answers (12)
roshini reddy
When you arrived at current year provision of 2156 you already considered bad debts it will not be considered again, existing is 2320 and required is 2156 so the excess is 164 which not required so we will transfer to P & L a/c
Bad debts Dr. To Drs acc. This the adj u did ma'am but my doubt is y not writing off bad debts to provision acc ?? I mean , closing entry for bad debts ma'am??
Sudha Reddy
What closing entry for bad debts
Provision acc or p& l account Dr. To bad debts acc. Ma'am??
there will be only 2 entries as its rectification losing entries not required only rectification we are doing , if it was full fledged question then we have to show that 1. Bad debts Dr 1560 to Trade receivables 1560 (reducing the debtors) (this was not in bad debts a/c we are writing off now as it was omitted) 2. Provision Dr 164 To P/L a/c 164 (excess prov )
roshini reddy
there will be only 2 entries as its rectification losing entries not required only rectification we are doing , if it was full fledged question then we have to show that 1. Bad debts Dr 1560 to Trade receivables 1560 (reducing the debtors) (this was not in bad debts a/c we are writing off now as it was omitted) 2. Provision Dr 164 To P/L a/c 164 (excess prov )
Maam If it was full fledged question , the entry should be Provision acc 1423 To p&l acc 1423. Right ma'am???
Reetikaa R
Maam If it was full fledged question , the entry should be Provision acc 1423 To p&l acc 1423. Right ma'am???
how did you get this figure of 1423
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