Question

Give journal entry for:
Bad debts written off.

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

Answer 1

The correct option is C Profit & loss A/c Dr.

To Sundry debtors A/c
Amount which is not recoverable from the debtors is called bad debts. Bad debts has to be debited as an expense/loss and credited to sundry debtors account.

1. Bad Debts A/c Dr.

To Sundry Debtors A/c

Bad debts is a loss for the organization and should be debited to profit & loss account.

2. Profit & Loss A/c Dr.

To Bad Debts a/c

Instead of passing 2 separate entries, only 1 comprehensive entry can be passed:

Profit & loss A/c Dr.

To Sundry Debtors A/c