Loss on debtors and effect on profits

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Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2018 Please aware me, how will i treat loss on debtors of year 2012 in Current Year and effect on Current Profits?

Arpit

Arpit (Expert)
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12 February 2018 If you have created provision in the books then you can set off the same in the current year firstly from the provision and if some amount still remains, you can write if off as bad debts from P&L account. Alternately, if you have not created provision in the earlier years, then you can write off the bad debts in the current year from the profit and loss account

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