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How to Determine Bad Debts Expense?

Answer Posted / vinotha.v

profit & loss A/c , debit side appear the bad debits
expenses.

the bad debits expenses calculated sundry debitors

Example:sundry debitors Rs. 10000/-
Bad debits @ 5%

Profit & Loss A/C debit side appear Rs.500.

10000*5%


Balance sheet assets side appear entry:

sundry debitors 10000

less: bad debits 500
_______
RS. 9500
______

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