Irrecoverable part of debtors is called as ______.

Creditor

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Discount

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Bad debts

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Earnings

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Solution

The correct option is C Bad debts
Bad debts refer to the amount that the firm has not been able to realize from its debtors. It is regarded as anticipated loss and is termed as bad debt. Sometimes, some people fail to pay their dues either partially or completely. The amount that is irrecoverable is a loss and known as "Bad Debt". The following entry is passed when a debit balance becomes bad:
Bad Debts A/c Dr.
To Debtor's A/c
As an effect of this entry, the debtor's account is closed and a new account called bad debts account is opened which is transferred, at the end of the year, to the Profit and Loss account (debit side).

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Similar questions

	Dr. (₹)	Cr. (₹)
Sundry Debtors (including Dewan for dishonoured bill of ₹ 20,000)	4,80,000	–
Provision for Doubtful Debts	–	24,000
Bad Debts	10,000	–

\frac{3}{4} th

	(Rs)
Opening Debtors	$45, 000$
Closing Debtors	$56, 000$
Discount allowed	$2, 500$
Sales returns	$8, 500$
Irrecoverable Amount	$4, 000$
Bills receivables received	$12, 000$
Bills receivable dishonoured	$3, 000$
Cheque dishonoured	$7, 700$
Cash Sales	$80, 000$
Cash received from Debtors	$2, 30, 000$
Cheque received from Debtors	$25, 000$

In a histogram , the number of parts is called as ___________ and the range of the parts is called __________

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