Search results
Apr 27, 2020 · The adjusting entry at the end of an accounting period to recognize estimated bad debts expense. Thus, a provision account called as "Allowances for doubtful account" is created. The below adjusting entry which is having hypothetical values as under is for example. Dr. Bad debts expense A/c (Expenses - P/L) 20,000 Cr.
Aug 31, 2009 · provision is a liability so for example : say u ve to creat a provision for baddebts . first u ve to debit the expenditure ie., baddebts . and then u ve to create a liability saying provision for bad debts.. so the effect is u ve debited the expenditure and this provision for bad debts will be shown in the liability side of the balance sheet...
Oct 31, 2012 · 17.2 Section 36 (1) (viia) of the Income-tax Act provides for a deduction in respect of any provision for bad and doubtful debts made by a scheduled bank or a non-scheduled bank in relation to advances made by its rural branches, of any amount not exceeding 1½ per cent of the aggregate average advances made by such branches. Finance Act, 1985.
Apr 1, 2013 · Bad debt (ind.exp in Tally) Dr 25000. To prov. For bad debts (s.debtors in Tally) Cr 25000. Then later if we have identify the bad debt amount only 15000. Then the entry. Prov.for bad debt Dr 15000. To Bad debts Cr 15000.
Sep 7, 2013 · So say on 31-Mar-13 the company has Rs. 40000 as bad debts which relates to previous years. Provision for bad debts balance as on 1-4-12 is 15000. So now entries on 31-3-13 will be . Bad debts 15000. To Debtors 15000 . Provision for bad debts 15000. To Bad debts 15000 . Now I am not able to pass the entry to create reserve for bad debts !
May 15, 2015 · opening provision for doubtful debts is 51000. during year 10000 written off as bad debt. closing debtors is 630000.decided that 10% of debtors is to be maintained as provision. calculate closing blc towards provision for doubtful debts and pass journal entry to the provision maintained..
Jan 5, 2014 · realised of bad debts are incorrect. According to my view if bad debts realise then u get money so entry would be: 1. cash/bank A/c dr. to bad debts recovered (Income nature) 2. bad debts recovered a/c dr. to P& L A/c (transfer of bdr). while whatever amt is stud in PBDD A/c will remain same. but if u need to decrease the provision in current ...
Mar 31, 2014 · Please let me know the entries for "Provision for bad debt" & "Bad debt" for current & next finantial year. Thank you. (1)Current year:- creating provision: * P & L a/c Dr. To provision for bad debts (2) next year writing off bad debts * Bad debt a/c Dr. To Debtors * provision for bad debt a/c Dr.
Apr 22, 2014 · 22 April 2014 Is the below entry correct, when there is a provision created for Debtors P&L a\c.....DR To Provision for Debtors (Being provision made) since Provision for Debtors is a contra asset, it will be maintained in liability side.
Feb 11, 2011 · Replied 27 September 2011. Bad debt is a recorded loss while a provision for doubful debts is a provision created upon estimating the loss.. Simply first has the element of certainity to a greater extent and the other is comparitively uncertain...being treated under AS-5 while the prior doesnt come so..
