Supposed we raised the Bill to the party last year. Next
year party refused to pay the bill. Now I want write off
the ledger of that party. How i make journal entry?
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Answer Posted / saurabh jain
Another opinion on this regard is the party is not declared
bankrupt so the matter may be taken to court for resolving
the dispute so as per AS 29 we should not write off as bad
debts but we should just make a provision.
p&L ac Dr
to provision for bad debts
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Q5 Prepare a Balance sheet from the following particulars: Gross profit =Rs.80,000 Gross profit to cost of goods sold =1/3 Stock velocity =6 times Opening stock =Rs.36,000 Accounts receivable velocity =72 days (year=360 days) Current assets=Rs.1,50,000 Account payable velocity=90 days Bills receivable =Rs.20,000 Bills payable=Rs.5,000 Fixed assets turnover ratio (on cost of goods sod)=8 times
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