Provision for bad debts are also known as deduction from __________ from balance sheet.

Debtors

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Creditors

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Sales

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Purchases

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Solution

The correct option is A Debtors
The amount of money that a business does not expect to collect from its clients. A bad or doubtful debt is an operating expense that can be reported on a financial statement when a customer is experiencing financial troubles or has filed for bankruptcy.

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Similar questions

Q. The provisions for bad debts and provision for cash discounts which appear as a deduction from sundry debtors in the balance sheet is due to the application of _________.

Q. Prepare the bad debts account, provision for bad debts account, profit and loss account and balance sheet from the followii information as on December, 31, 2011.
(Rs.)
Debtors 80,000
Bad Debts 2,000
Provision for bad debts 5,000
Adjustments
Bad debts Rs. 500, Provision on debtors @ 3%.

Q. C's Trial Balance contains the following information: Bad debts Rs. 8,000, Provision for Doubtful debts Rs. 6,000, Sundry debtors Rs. 25,000.It is desired to create a provision for bad debts at 10% on Sundry debtors at the end of the year. Sundry debtors (after provision) will appear in Balance Sheet at a figure of :

Prepare the bad debts account, provision for account, profit and loss account and balance sheet from the following information as on March 31, 2017

	Rs
Debtors	80,000
Bad debts	2,000
Provision for doubtful debts	5,000

Adjustments:

Bad Debts Rs 500 Provision on Debtors @ 3%.

Prepare the bad debts account, provision for bad debts account, profit and loss account and balance sheet from the following information as on December 31, 2011.

Rs.

Debtors 80,000

Bad Debtors 2,000

Provision for bad debts 5,000

Adjustments:

Bad debts Rs. 500, Provision on debtors @ 3%.

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Provision for bad debts are also known as deduction from __________ from balance sheet.

The correct option is A DebtorsThe amount of money that a business does not expect to collect from its clients. A bad or doubtful debt is an operating expense that can be reported on a financial statement when a customer is experiencing financial troubles or has filed for bankruptcy.

The correct option is A Debtors
The amount of money that a business does not expect to collect from its clients. A bad or doubtful debt is an operating expense that can be reported on a financial statement when a customer is experiencing financial troubles or has filed for bankruptcy.