The amount of bad debts is:
Profit
Income
Expenditure
Loss
The bad debt is treated in profit and loss account as:
Expense
Gain
Discount is allowed for:
Written off debts
Doubtful debts
No debts
Creditors
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
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
Credit control
When the account of the debtor has been closed, what do you with cash book?
Debited
Credited
Not recorded
Neither debited nor credited
Which word is used as no individual names, dates and amount details have been provided?
Debtors written off
Unpaid amount
Where will be the difference between provision for bad debts posted?
Profit and loss account
Balance sheet
Journal
Ledger
At the end of the year, bad debts recovered account is transferred to the bad debts account. This will be:
Loss of the year
Reduces the bad debts written off during the year
Not affect at all
Increases the profit
Bad debts recovered is treated as a:
Dependent income
Independent income
Dependent loss
Independent loss