Provision entry
anmol gupta (ARTICLE) (66 Points)
27 August 2014
i am very confused about the entry of provision of doubtful debts.please tell wat is the entry.
anmol gupta (ARTICLE) (66 Points)
27 August 2014
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 14 October 2014
Provisional for Doubtful Debts:
You have 2 customer A & B - If A makes prompt payment on due date but B takes his own time to settle your payment & that too in makeing bits & pieces. But after some time he has stopped making Payemnt say an amount of Rs: 10,000/- due still due from 1.00 lac bill. If you make Provision for the doubtful amount (which may not likely to come) his account can be squared off by passing the entry. Otherwise his balance will shown forever.
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