what do you mean Provision for bad debit
Answers were Sorted based on User's Feedback
Answer / rahul
Provision for bad debts is like a reserve created for any
specific purpose i.e.,Bad debt.It shows himself as expenses but
its a fund created to adjust the bad debts.when the
Provision is created then the entry is
Profit & Loss A/c - - - - - Dr.
To Provision for Bad Debts.
And when bad Debt is actually happen then it is adjusted
with the Provision for Bad Debt Accounts & the entry is
Provision for Bad Debts - - - - - - Dr.
To bad debt A/c
Is This Answer Correct ? | 27 Yes | 7 No |
Answer / guest
In business transactions there are chances that some debts would be
doubtfull so to recover those debts we make provisions called provision
for bad debts
Is This Answer Correct ? | 11 Yes | 2 No |
Answer / rahul jaiswal
In business transactions there are sometimes sundry debtors
not a paid amount and recover those debts we make provision
for bad debts i.e
Profit & loss A/c --- Dr
To Provision for bad debts A/c
Actually, those bad debts exenses are adjusted provision
for bad debts then entry in accounting voucher done:
Provision for bad debts A/c----- Dr
To bad debts A/c
Is This Answer Correct ? | 6 Yes | 0 No |
Answer / guest
In business transactions there are chances that some debts would be
doubtfull so to recover those debts we make provisions called provision
for bad debts
Is This Answer Correct ? | 5 Yes | 2 No |
Answer / rahulkumar
it is an attempt to prevent the losses due to bad debts and
the certain amount is taken from the current years profit
to meet the losses
entry
profit & loss a/c ............ dr
to provision for bad debts a/c
Is This Answer Correct ? | 3 Yes | 1 No |
Answer / shobh nath ram
PROVISION FOR BADEBT IS A CHARGE AGAINST PROFIT WHICH IS CREATED OUT OF PROFIT.SUCH TYPE OF PROVISION IS CREATED TO MITIGATE THE CONTINGENT LOSS.PROVISION IS ONLY CREATED IF ITS PROVIDE THE FURTHER EVIDENCE OF CONDITIONS.
Is This Answer Correct ? | 1 Yes | 0 No |
Answer / sohail_ali53
bad debts is nothing but it is reserve created for uncertain insolvency of debtor and adjusted to sundry debtor
Is This Answer Correct ? | 5 Yes | 6 No |
Answer / c.lokesh
when you given some to customer or vendor its is not
recover that money that is called rever for bad debts
Is This Answer Correct ? | 0 Yes | 1 No |
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