Provision for bad debts are created by ____________ profit and loss account. a) Debiting b) Adding c) Crediting d) Deducting

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Solution

Option a) Debiting. This provision is created by debiting the Profit and Loss Account for the period.

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Similar questions

Rahul's trial balance provide you the following information:

$\begin{matrix} Debtors & R s . 80, 000 Bad debts & R s . 2, 000 Provision for bad debts & R s . 4, 000 \end{matrix}$

It is desired to maintain a provision for bad debts of Rs. 1,000. State the amount to be debited/credited in profit and loss account.

Which account is debited while creating a provision for doubtful debts in the books?

Following information is given in trail balance

$\begin{matrix} Bad debt & R s . 3, 000 Provision for bad debts & R s . 3, 500 Debtors & R s . 40, 000 \end{matrix}$

Additional Information:

It is desired to make a provision for doubtful debts @10% on debtors. Find the amount to be debited to profit and loss account.

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