Depreciation, Provisions and Reserves
Chapter 7: Depreciation, Provisions and Reserves · ACCOUNTANCY · EN medium
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For creating a provision for doubtful debts the following journal entry is recorded: Profit and Loss A/c (with the amount of provision) To Provision for doubtful debts A/c This is explained with the help of the following example Observe an extract of the trial balance from the books of Trehan Traders on March , is given below: Account title L.F. Debit Credit Sundry Debtors , • Bad debts proved bad but not recorded amounted to Rs. , • Provision is to be maintained at % of debtors. In order to create the provision for doubtful debts, the following journal
📖 Accounts 7 (1) · Page 39
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For creating a provision for doubtful debts the following journal entry is recorded: Profit and Loss A/c (with the amount of provision) To Provision for doubtful debts A/c This is explained with the help of the following example Observe an extract of the trial balance from the books of Trehan Traders on March , is given below: Account title L.F. Debit Credit Sundry Debtors , • Bad debts proved bad but not recorded amounted to Rs. , • Provision is to be maintained at % of debtors. In order to create the provision for doubtful debts, the following journal
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