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How to treat the provision for bad debts which appear on
credit side of the p&L A/c.

Answer Posted / amjad faqih

Hello every one,

I do agree with Mr. Surya kumar but want to add little more
in answer once you received your money after 2-3-4 years
then what would be the entry as following.
cash/bank ----- Dr XXXX
To provision for bad deb (P&L) ----Cr XXXX

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