12 November 2014
Where the Provision for Bad & Doubtful Debts will be shown in the Balance Sheet of a company as per new Schedule VI (Revised). Thanks in advance.
12 November 2014
It is shown as Less from doubtful debtors.
Over all presentation can be as below
TRADE RECEIVABLES
Unsecured:- Debts outstanding for period exceeding six months -Considered good A -Considered doubtful B Less: provisions for doubtful debts(B) A+B+(B) . . Other debts -Considered good C
12 November 2014
Thanks sir, but my doubt is that in the new format may be we have to show provisions on the liability side of balance sheet as: 8.6.4.Short-term provisions The amounts shall be classified as: (a) Provision for employee benefits; (b) Others (specify nature). Others would include all provisions other than provisions for employee benefits such as Provision for dividend, Provision for taxation, Provision for warranties, etc. These amounts should be disclosed separately specifying nature thereof. Sir, earlier we used to deduct provision from debtors. My doubt is whether we have to show it under short term provisions.
My above reply is based on as suggestion given for presentation of TRADE RECEIVABLE
http://www.mca.gov.in/XBRL/pdf/Guidance_Note_Rev_ScheduleVI.pdf . . Presentation given in above reply is comply with revised schedule VI . . Hence provision for doubt ful debts have to be reduced from DEBTORS ONLY as advised above to comply with Revised shedule VI requirement and it cannot be classifed as short term provision.