debtors is - 25000/-
bad debts - 6000/-
provision for baddebths is 5000/-
how to pass the entry for above
entry
(Guest)
3 Replies
Devendra
(Chartered Accountant)
(4775 Points)
Replied 06 November 2010
debtors is - 25000/-
bad debts - 6000/-
provision for baddebths is 5000/-
how to pass the entry for above
Following are the entries:-
Debtors A/c Dr. 25000
To Sales A/c 25000
(Goods sold worth Rs. 25000)
Bad Debts A/c Dr. 6000
To Debtors A/c 6000
(Debt becomes irrecoverable, thus written off - bad debt)
Bad Debts A/c Dr. 5000.
To Provision for Bad debts A/c 5000
(Being provision for bad debts made)
Regards,
Devendra
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 07 November 2010
IN THIS CASE PROV MAD EIN THE BOOKS LESS THAN ACTUAL , HENCE SHOULD B EXTEND TO THE AMOUNT OF ACTUAL BAD DEBTS SO ONE ENTRY REQUIRED
BAD DEBTS A/C DR. RS. 1000
PROV FOR B.D. CR RS. 1000
Devendra
(Chartered Accountant)
(4775 Points)
Replied 07 November 2010
Thanks Lokesh for correcting me...!!
Wish You happy diwali..!!have fun..!! :)
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