What is the entry of provision for bad debts?

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Solution

The following journal entry needs to be passed for provision for bad debts

Profit and loss A/c Dr.

Provision for bad debts A/c Cr.

Also read:

Difference Between Reserve and Provision

What Are Reserves in Accounting

What Is Reserves

Difference Between Capital Reserve and Revenue Reserve

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An extract of Trial balance from the books of Tahiliani and Sons Enterprises on Marc 31 2017 is given below:

Name of the Account	Debit Amount Rs	Credit Amount Rs

Sundry debtors	50,000
Bad debts	6,000
Provision for doubtful debts		4,000

Additional Information:

Give necessary accounting entries for writing off the bad debts and creating the provision for doubtful debts account. Also, show the necessary accounts.

Q. The entry for creating a provision for bad debts is:

Q. The entry for creating a provision for bad debts is ___________.

Q. Provision for bad debts is calculated on __________.

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

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