Plz. tell me, is there any difference between provision for doubtful debts & provision for bad debts? & what will be the treatment of provision for bad debts in value added statement?
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 13 October 2011
there is no diff. b/w both......since both are on estimation basis.....Infact, bad debt is different from these terms coz that is based on actual basis.....
In value added, provision for bad/duobtful debts are jst deducted while caclulating Gross Value Added.
Shaik
( M.com,IC(W)AI - Inter)
(723 Points)
Replied 13 October 2011
| Originally posted by : CA Sumit Grover | ||
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there is no diff. b/w both......since both are on estimation basis.....Infact, bad debt is different from these terms coz that is based on actual basis..... In value added, provision for bad/duobtful debts are jst deducted while caclulating Gross Value Added. |
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Agree with Sumit Grover.
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