Question

Give journal entry for:

Bad debts debited to profit and loss account.

• A. Profit & Loss A/c Dr.
  To Bad debts A/c
• B. Profit and Loss A/c Dr.
  To Provision for doubtful debts A/c
• C. Bad debts A/c Dr.
  To Sundry debtors A/c
• D. None of the above

Answer 1

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:

Profit & Loss A/c Dr.

To Bad Debts A/c