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We had billed to a Customer Rs. 50000/- he paid 45000 to us n not paying balance 5000/- how and where to enter Rs. 5000/-
Is it bad debt...
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Answer / mukesh sharma
its depend upon the probability of such person i.e. before taking any answer u must check the previous records of such person and then analyse if he regular paid his dues then u have no need to take any action and if he is a frauder then make a provision for rs. 5000 by making a journal entry
p/l a/c....dr.
to provision for doubtful debts a/c
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