cost sheet

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what is treatment of bad debts written off in cost sheet
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normal bad debt should be included in the selling overhead while the abnormal bad debt should be written off to costing profit & loss account & should be excluded from cost. 

As per CRA-1 certain items of expenses are specifically excluded while computing cost of product as nature of financial expense, bad debts being one of these. Kindly refer attached link for details as per guidance note issue by Institute of Cost Accountants of India :

https://members.icwai.org/members156/CAR/gncas-regform.asp
Shilpa absoloutely correct....


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