In this case, the following journal entries will be recorded : Debit Credit Date Particulars L.F. (a) Bad debts A/c To Sundry debtors (Futher bad debts) (b) Provision for doubtful debts A/c Dr. To Bad debts A/c (Bad debts adjusted against the provision) Profit and Loss A/c , To Provision for doubtful debts A/c , (Amount charges from profit and loss account) Profit and Loss Account for the year ended March , Provision for doubtful debts: Further bad debts New provision , , Less Old provision , , * Only relevant items. Balance Sheet as at March , Sundry debtors , Less Further ( , ) bad debts , Less Provision ( , ) for doubtful debts , * Only relevant items.
Note : The amount of new provision for doubtful debts has been calculated as follows: Rs. , × / = Rs. , .