Question

What is the entry for creating the provision for doubtful debts?

• A.

  Provision for doubtful debts A/c Dr

  To Profit or loss A/c

• B.

  Profit or loss A/c Dr

  To Provision for doubtful debts A/c

• C. No Entry
• D. None of these

Answer 1

The correct option is B

Profit or loss A/c Dr

To Provision for doubtful debts A/c

The correct entry is

Profit or loss A/c Dr

To Provision for doubtful debts A/c