what kind of account is provision for bad and doubtful debts.??
in a text book it is given that it is a PERSONAL ACCOUNT (as per English Approach) and a ASSET ACCOUNT as per American Approach )
is that true ??
how is tat Asset account?? i think it is LIABILITY Account?? Explain this to me.
and also please explain this JE
Profit and loss acc DR xxx --
To provision to bad and ddr acc -- xx
If provision for bad and doubtful debts is an ASSET then y it is taken in liability side in balance sheet???
Please anyone pls explain..-