a provision must be made in advance for those


A provision must be made in advance for those debts whose recovery is uncertain and to writing off bad debts. Each enterprise, depends on their past experience, make a provision for doubtful debts to meet that a loss while it happens. It is done for the reason of reflecting the debtors in the balance sheet at their true value. Provisions for doubtful and bad debts appear on the debit side of the profit and loss account and at the credit side of the provision for bad debts account.

Request for Solution File

Ask an Expert for Answer!!
Cost Accounting: a provision must be made in advance for those
Reference No:- TGS0411710

Expected delivery within 24 Hours