Double Entry for Provision for Doubtful Debts
We calculate it after deducting bad debts and provision for bad debts from the debtors. It would not be a proper disclosure to disclose provision for doubtful debts under the head Current liabilities and provisions. Bad Debt Provision Accounting Double Entry Bookkeeping Journal Entries in Case of Bad Debt and. . Journal Entry Date Detail DR CR 31 Dec Profit and loss ac Provision for doubtful debts account 47500 47500 An extract from the profit and loss account for year ended 31 December 2004 would show. The other side would be a credit which would go to the bad debt provision expense account. The format of balance-sheet also requires provision for doubtful. To Provision for Bad and Doubtful Debts. A firm creates it to encourage the debtors towards early payments of debts. The Journal entry for this would show. Increase in provision for doubtful debts 10 10 000 800 200. Being the provision made for Doubtful...