Question

The entry for creating provision for doubtful debts is debit and credit provision for doubtful debts account.

• A. Profit or Loss A/c
• B. Trading A/c
• C. Cash A/c
• D. Bank A/c

Answer 1

The correct option is A Profit or Loss A/c

Provision for doubtful debts is created out of profits, and therefore profit or loss account is debited.