Answer Posted / joseph

Here two things can happen
1) If a co. for Bad Debts in balance Sheet (Doesn't Write off)
Then the recovery Entry Will be

Cash/ bank Dr
Bad Debts Cr

2) If the co. has written off the bad debts &
later(following year) you recover it Then the entry will be
Cash/ Bank Dr
Bad Debts Recovered A/c (Indirect Income)

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Respective sir I'm bcom 1st sem student. I have very interest in banking sector. I finished my pu with 88% how I can prepare for banking exam (especially po)yet I have no any practice but I hope if I get good guidance I can pass my banking exam so kindly inform me how I can prepare for po exams. My email address is- 98anjuma@gmail.com. I'm really counting second when I will get ans by u. Thank you sir

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