finalization of public ltd. co.

This query is : Resolved

hemal (Querist)
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12 May 2009 sir i m in finalization of public limited company, i would like to request you to give me some detail note & guidance for provision on debts & creditors.
Plz it's urgent.

Deepak Agrawal

Deepak Agrawal (Expert)
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18 May 2009 you have to ask your marketing person to give list of debtors / creditors for which provision needs to be made. Entry will be:

Provision for Doubtful debts (P&L)
To Provision for doubtful debts (Balance sheet liabilty)

Be sure that the same is approved by the board of directors. Otherwise auditors will object