03 December 2008
It means that you are writing off (clearing or deleting) irrecoverable debtors from your books. For example X is your debtor from last 2 years for Rs. 50,000. you have tried your best to recover your amount and now it seems that you will not recover this amount. So you need to write off these bad debtors from your books. The entry will be as below:
Bad Debts written off A/c Dr. (P & L A/c) rs. 50,000.00 To Sundry Debtors Accounts (B. Sheet) Rs. 50,000.00
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