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Provision for doubtful debts
Accountancy
So my questuon how did they get Rs. 4000 as the provision for baddebts in the other expenses head of P&L a/c! Detailed explanation inclusing journal entries please 🙏 🪽
Answers (4)
Best Answer
Question has given us 6000 opening balance of provision for DD & Asking us to create a provision on debtors @4% i.e (250000×4% = 10000) as we already have 6000 as provision so we have to create provision only for ₹4000 & that's why we will put only 4000 in p&l account
Aashu Porwal
Question has given us 6000 opening balance of provision for DD & Asking us to create a provision on debtors @4% i.e (250000×4% = 10000) as we already have 6000 as provision so we have to create provision only for ₹4000 & that's why we will put only 4000 in p&l account
So if nothing else provided we should find difference between the opening balance and amount to be kept as provision and powt it on P& L! Right?
https://www.youtube.com/live/Vg-_oTf7oJ4?si=AnMyBnBZ9Ldi2-Nj&t=288 You can check the adjustment summary explanation here.
