16 June 2010
In a question of cash flow statement. its given in balance sheet 98-99 99-00 provision for doubtful debts 30,000 24,000 Whether this decrease in provision be treated as bad debts written off or decrease in provision no information has been given about bad debts
16 June 2010
In my view, in the absence of any information on Bad Debts , it should be reduction of provisions of doubtful debts. The logis behind this is > When Bad debts ocuur, then we pass the following entry > Bad Debts..........Dr To Provison for D/D.....Cr. Since there is no information on Bad Debts, so it would be reduction in provisions only...
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