Creation of prov for d/d

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2013 which entry is correct and y?

1.) P&L a/c ...........dr
TO Prov for D/D

OR

1.) Prov for D/D a/c..........dr
To debtors
and
2.) P/L a/c...................dr
To Prov for D/D

Sumit Grover

Sumit Grover (Expert)
Follow

19 March 2013 the entry is :
Provision for Doubtful Debts(P&L) Dr.
Provision for Doubtful Debts(B/S) Cr.

The provision will be booked under a separate account.

But the same shall be disclosed as follows in B/s:

Debtors XXX
Less: Provision for doubfult debts (XXX)

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2013 why this and not the second one?

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