While creating provision for doubtful debts in the books of account, provision for doubtful debts account is:

Debited

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What are provisions? How are they created? Give accounting treatment in case of provision for doubtful Debts.

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.

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

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

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

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