Bad Debt Provision is which type of account .
Whether Nominal Personal or Real?
What are the entries we are to passed for making bad debt provision?
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Bad Debt Provision
Replies (5)
i think,,,,,,,
Bad Debt Provision is personal a/c
Trial Balance dr cr
Bad debts 3900
Sundry debtors 45000
Provision for bad & doubtful debts 4500
Adj.
Write off futher bad debts Rs. 1000
Provide for bad & doubtful debts @ 5%
Journal entry dr cr
Bad debts a/c 1000
To sundry debtors a/c 1000
Provision for bad & doubtful debts 4900
To bad debts 4900
P/L 2600
To provision for bad debts 2600
bad debt provision is a valuation a/c not personal a/c. the other name valuation a/c is contra asset a/c.
agree with a.jian
bad debt provision is a personal account
bad debts is a nominal account
what should be the netries for FD get matured & the same is renewed Pricipal+interest
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