Archive Pages Design$type=blogging

Bad Debt Expense

At the end of 1st year of operations company has a closing balance of receivables amounting to Rs....

At the end of 1st year of operations company has a closing balance of receivables amounting to Rs. 15,00,000.00.  The company has a policy of 10% to cover risk against its receivables.

What will be the amount for which the entry will be recorded.

umer from Pakistan

Umer, we deduct  new provision for bad debts from account receivable because it is our liability. You have given it as bad debt expense. New provision for bad debt is not expense. It is current liability. If current provision value will be less than beginning provision balance, then difference will go to the debit side of profit and loss account.  We will do this treatment, if provision for bad debt will be given in the adjustments. There will not any journal entry. We just show as closing balance of provision for bad debt account.

Provision for bad debt account 

Debit side

To balance C/d 1,50,000

COMMENTS

Name

accounting Accounting Concepts Accounting Education accounting equation Accounting Solutions Algebra Answer the Questions and Become Master Balance Sheet bank Bodybuilding Education Business Business Education Business Environment Business Solutions CA Calculus cameras Career Solutions carpentry Computer Computer Basics Computer Hardware Computer Networking Computer Software Computer Solutions cooking education Corporate Accounting Corporate Law cost cost accounting CSE depreciation determinant drawing Drywall amp; Plaster e-accounting earn money Economics Education Education Education Solutions Electronics Email Examination Finance Education Finance Solutions financial Financial Accounting FIR Football Gambling Gambling Addiction Goldsmith Guest Writers Health Education Help History Home Building Home Building amp; Remodeling Home Maintenance amp; Repair Index Number India Indian Language Inspiration insurance internal audit Internet Internet Forum Jobs amp; Careers Journal journal entries journal entry Kenya Laptop Basics Law Education Law Solutions Learning Lecture Legal Education Linear algebra Linear Programming Malaysia Management Accounting Management Education Management Solutions Mathematics Education matrices Mobile motivation MS Excel Nepal Nigeria organisation Other Pakistan Personal Finance Philippines Photography Photoshop Software Picture Plumbing Education Probability Profiles provision real estate rectification Relationships amp; Family Religious Studies Result Sahas Saudi Arabia Science Education Self-Learning Skating Slideshow Solution Spiritual Education Sports Statistics Statistics Education stock Story svtuition Tablet Education Tally Tally Solutions Tally.ERP 9 tax Tax Solutions teaching Teaching Education Test Testimonials Travel amp; Events Trigonometry tuition TV Shows UK USA variance analysis VAT vector Video videos Vocational Education Web design website Wife Window Movie Maker Wordpress working capital Youth youtube
false
ltr
item
Svtuition: Bad Debt Expense
Bad Debt Expense
http://3.bp.blogspot.com/-vUf3wBZj8jI/VeVHLtTt3sI/AAAAAAAASnc/pbwhN3m4dkw/s320/bad-debts-e1271877258313.jpg
http://3.bp.blogspot.com/-vUf3wBZj8jI/VeVHLtTt3sI/AAAAAAAASnc/pbwhN3m4dkw/s72-c/bad-debts-e1271877258313.jpg
Svtuition
http://www.svtuition.com/2012/07/bad-debt-expense.html
http://www.svtuition.com/
http://www.svtuition.com/
http://www.svtuition.com/2012/07/bad-debt-expense.html
true
3065238051582539150
UTF-8
Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago