Answer Posted / k. phalguna rao

1) Bad Debts means we can expect to not receive the money
(cash/bank) from the customer (sundry Debtors) towards
goods sold to him so if the money is not received from the
customer,it is loss to the company hence losses to be
debited as Bad debits and credit to the customer (Sundry
Debtors - Current Asset) hence the current asset value
decreased
2) Provision for Bad Debts: In the business we can not
expect how much will be the bad debts because to increase
our sales and to competite with opponents we have to give
the goods / services in credit hence to protect from this
risk every compnay made a provision for Bad Debts from
Sundry Debitors

Note: if Bad Debits happen in the current financial year
first we should be adjusted from the Provision for Bad
Debts, if the bad debts crossess than provison for bad
debts then balance amount reduced from Sundry Debtors

suppose sundry debtors worth 50000.00
allow 5% on debtors for provision for bad dabts & 10% for
Bad dabts in the year end after adjust from the provision

Provision for Bad Debits A/c Dr. 2500 (50000x5% = 2500.00)
To Sundra Debtors 2500

Actual Bad Debts = 50000 x 10% = 5000.00

(BD=5000-2500(PBD) = Balance Bad Debts is 2500

Bad Debts A/c Dr. 2500
To Sundry Debtors 2500

Do you know what is liabilities and what all does include in current liabilities?

1032

---

What are depreciation and amortization?

1128

---

What is meant by balancing?

1121

---

Spinoff,Spelloff

2259

---

How create the invoices?

2012

---

what are the different methods of teaching share and debenture to pre degree students

1945

---

What are control ledgers? What are the purposes of maintaining it?

1172

---

I TRANSFERRED A STOCK OF RS. 100.00 FROM HEAD OFFICE DELHI TO MFG. UNIT OFFICE AT HARYANA AGST FORM F.AT BRANCH GOODS ARE PROCESSED AND ADDED VALUE OF RS. 80.00 AND TRNF BACK TO DELHI HEAD OFFICE FOR RS. 180.00 AGST FORM F FROM HARYANA . AND HEAD OFFICE SOLD THIS TO PARTY AT RS. 200.00 . I WANT TO KNOW HOW TO MAKE ACCOUNTING ENTRIES IN BOTH BOOKS HEAD OFFICE AND BRANCH OFFICE. TO SETTEL ACCOUNT AND TO CONSOLIDATE THE BOOKS AT THE END OF YEAR.

1960

---

what is the Differed Tax Liability & How it is calculate ?

2414

---

As you know excellent communication skills are at the core of this position. Do you have experience with interpersonal communication in a professional setting?

1083

---

purchase plant and machinery

1557

---

What is fractional code and how can i get a fractional code for a particular account?

2045

---

What is icai?

1220

---

what is addition of Opening Balance and net profit transfered from profit and loss account called

1942

---

suppose we received goods from H.O.The sisterconcern received it.wat will be the entries if tge S.C.sells it from here.

2305

---