Estimate of the amount which a business will lose in a financial year because of bad debts is known as:
Provision for bad debts
Bad debts
Written off debts
Credit control
Bad debts recovered is treated as a:
Dependent income
Independent income
Dependent loss
Independent loss
At the end of the year, a bad debt recovered is treated as:
Loss of the year
Profit of the year
Expense
Income of the year
When the account of the debtor has been closed, what do you with cash book?
Debited
Credited
Not recorded
Neither debited nor credited
The bad debt is treated in profit and loss account as:
Expenditure
Gain
Profit
Discount is allowed for:
Doubtful debts
No debts
Creditors
The concession allowed, when debtors make immediate payment is known as:
Provision
Discount
New provision
The amount of bad debts is:
Income
Loss
Out of this, which principle is followed in case of provision for doubtful debts?
Matching principle
Historical principle
Disclosure principle
Revenue recognition principle
Where will be the difference between provision for bad debts posted?
Profit and loss account
Balance sheet
Journal
Ledger
