Bed Debt and Provision.

[email protected] · 04-21-2010, 07:00 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by imdad1
 Yar there is no difference between the two entries mentioned by you in one entry you are mentioning specific head of expense that is bad debt and in other you are gernally debiting Pl dono mein kuch bhe fark nahen dont get confused...
<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by [email protected]
 <blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Star
 Pleaes rephrase the two suggested method, i cant understand the query.!
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Dear Friend.

I asked that what should we have to do in respect of passing the genral entry for adjustment of provision for bed debt account.
let suppose that; if there is an opening blnc in provision account is RS 20,000 / and this year provision is being maintain 5 % on closing blnc of debtors which is Rs, 600,000/ after write-off bed debts.

Meance, this is closing blnc of provision account is Rs. 30,000/-.

My question is that

1) should we charge the provision directly into P/L ACCOUNT by
Passing the below General entry.

P/L ACCOUNT DR 10,000
Prov. for bed debt Cr 10,000

2) should we adjust this prov. balance by passing the below general
entry.

Bed Debt Expence DR 10,000
Prov. for bed debt CR 10,000

What is the best rout to adjust this provision blnce in both above cases.

Regard

UMAR.

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My Dear Imdad Sb.

I am not asking about difference. i am just asking that what is the best route??

Some teacher sys that charge prov. directly into P/l, and some teacher sys that charge prov. throug bed debt expense account.

There is no doubt of any difference becoz net impect is equal in both cases but why some teacher choise different approach. what is the reason??