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
Which word is used as no individual names, dates and amount details have been provided?
Bad debts
Debtors written off
Unpaid amount
Loss
The bad debt is treated in profit and loss account as:
Expense
Expenditure
Gain
Profit
Why each business try to anticipate the amount which will be a loss because of bad debts?
To reduce tax
For a clear statement
For taking loans
To arrive at correct profit
Where will the debts be posted in profit and loss account?
Credit
Not recorded
Debit
In the loss side
The amount of bad debts is:
Income
At the end of the year, a bad debt recovered is treated as:
Loss of the year
Profit of the year
Income of the year
What do we do with provision for bad debts in balance sheet?
Added to debtors account
Deducted from debtors account
Added to creditors account
Deducted from creditors account
The concession allowed, when debtors make immediate payment is known as:
Provision
Discount
New provision
