PLEASE ADVISE ME WHATS THE BAD DEBTS ENTRY IN ACCOUNTS BED DABTS SHOW ON WHICH HEAD PLZ URGENT
6 Replies
Nitin Singhal
(Gaining knowledge...)
(320 Points)
Replied 18 May 2010
Hello Sandeep ji,
Entry for Bad Debts: Bad Debts A/c Dr.
To Debtors A/c
(being bad debts written off)
At the year end: P & L A/c Dr.
To Bad Debts A/c
(being amt. transferred)
Bad debts do not appear under any head as these are items of P&L A/c and not of BALANCE SHEET. If you were asking for Debtors they appear under head Current Assets, Loans & advances.
Vikas Singh
(article)
(27 Points)
Replied 19 May 2010
Bad debts does not cime under any head,
it is debited to P/L acc. & deducted from the debtorsamount
Pradip Narsingani
(Income Tax & GST Consultant/ CA-Final)
(572 Points)
Replied 19 May 2010
| Originally posted by : Nitin Singhal | ||
 |
|
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he is right
Reena Verma
(CA Finalist)
(417 Points)
Replied 19 May 2010
Bad debts is a loss for the Company therefore it is debited to P&L A\c and deducted from Debtors.
Piyush Tanwar
(Assistant Manager - Accounts)
(1432 Points)
Replied 19 May 2010
Entry for bad debts in books :
Bad debts A/c -Dr.
To Debtors A/c
(being bad debts written off)
At the end of the year , the entry will be:
P&L A/c -Dr.
To Bad debts A/c
(being amount transferred)
Bad debts don't appear under any head as this is the item of Profit and loss A/c not Balance sheet.
bad debts are already adjusted in the net profit derived from P&L A/c which is included in the calculation of closing capital.
And debtors is shown on head "Current assets and loans & advances" on the assets side , after deducting this bad debts.
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