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Bad debts written off, needs a new entry => Bad Debts A/c Dr. 1560 To Trade Receivables A/c 1560 Provision for bad debts 10% of Actual debtor balance Debtor balance given = 23390 LEss: point (iv) excess amount accounted to a customer (1740-1470) = 270 Less: Bad debts written off, (not accounted earlier, entry passed now) = 1560 i.e 21560 is correct balance of debtors correct provision = 10% of 21560 = 2156 Provision created = 2320 Excess provision to be reversed now = 164 Provision for bad debts A/c Dr. 164 To P&L A/c 164