Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Profit and Loss A/c Dr. To Provision for doubtful debts A/c
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Bad debts A/c Dr. To Sundry debtors A/c
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
None of the above
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is A Profit & Loss A/c Dr. To Bad debts A/c Amount which is not recoverable from the debtors is called bad debts. Bad debts is a loss for the organization and should be debited to profit & loss account. Following journal entry will be passed: