Qualification > Commerce

URGENT Accounting question

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cs:
If there's a bad debt, and no provision for doubtful debt, do we have to minus bad debt from Debtor in the balance sheet?

S.M.A.T:
It depends on the question,if the bad debt is in the additional information you must minus it from Debtor  and if it is in trial balance than bad debt should not be subtract from the debtor in the balance sheet.

I can explain you more elaborately if you give an example question. :)

Crooked:

--- Quote ---if it is in trial balance then bad debt should not be subtracted from the debtor in the balance sheet. Otherwise, YES.

--- End quote ---

Seconded.

cs:
here it is:

Crooked:
See, the thing is, yuh don't have to show the workings on the balance sheet fer the bad debts. The value of debtors in the balance sheet is the value after deducting the bad debts. However the bad debt is treated as an expense and must be debited to the Profit and Loss A/c.

Do yuh understand or do yuh want me to elaborate further?

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