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Give" journal entries " in balance sheet there is debtor: 8,00,000 and provision for bad debts: 40,000 .in adjustments there is given to write off bad debts amounted to 40,000? who knows answer fast?
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Give" journal entries " in balance sheet there is debtor: 8,00,000 and...
Baddebts a/c Dr.40000
To debtor. 40000
prov for baddebts a/c Dr.40000
To bad debts a/c. 40000
To debtor. 40000
prov for baddebts a/c Dr.40000
To bad debts a/c. 40000
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Give" journal entries " in balance sheet there is debtor: 8,00,000 and...
Understanding the Journal Entries for Bad Debts
When dealing with debtors and provisions for bad debts, it's essential to accurately record the write-off of bad debts in the financial statements. Here’s how to approach this scenario.
Initial Balances
- Debtors: 8,00,000
- Provision for Bad Debts: 40,000
Adjustment Requirement
- Write-off Bad Debts: 40,000
Journal Entry for Write-off
The write-off of bad debts will reduce both the debtors and the provision for bad debts. The journal entry is as follows:
1. Debit Bad Debts Expense: This reflects the expense for the amount no longer collectible.
2. Credit Debtors: This removes the uncollectible amount from the debtors' balance.
Journal Entry Format
- Bad Debts Expense Account: Debit 40,000
- Debtors Account: Credit 40,000
Impact on Balance Sheet
After the write-off:
- Debtors Balance:
- Original: 8,00,000
- Less: Bad Debts Write-off: 40,000
- New Debtors Balance: 7,60,000
- Provision for Bad Debts:
- Original: 40,000
- Less: Write-off: 40,000
- New Provision for Bad Debts: 0
Conclusion
The write-off of bad debts effectively reduces the debtor's balance and the provision for bad debts, reflecting a more accurate financial position of the entity. Always ensure to maintain proper records for transparency and accountability in financial statements.
When dealing with debtors and provisions for bad debts, it's essential to accurately record the write-off of bad debts in the financial statements. Here’s how to approach this scenario.
Initial Balances
- Debtors: 8,00,000
- Provision for Bad Debts: 40,000
Adjustment Requirement
- Write-off Bad Debts: 40,000
Journal Entry for Write-off
The write-off of bad debts will reduce both the debtors and the provision for bad debts. The journal entry is as follows:
1. Debit Bad Debts Expense: This reflects the expense for the amount no longer collectible.
2. Credit Debtors: This removes the uncollectible amount from the debtors' balance.
Journal Entry Format
- Bad Debts Expense Account: Debit 40,000
- Debtors Account: Credit 40,000
Impact on Balance Sheet
After the write-off:
- Debtors Balance:
- Original: 8,00,000
- Less: Bad Debts Write-off: 40,000
- New Debtors Balance: 7,60,000
- Provision for Bad Debts:
- Original: 40,000
- Less: Write-off: 40,000
- New Provision for Bad Debts: 0
Conclusion
The write-off of bad debts effectively reduces the debtor's balance and the provision for bad debts, reflecting a more accurate financial position of the entity. Always ensure to maintain proper records for transparency and accountability in financial statements.
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Give" journal entries " in balance sheet there is debtor: 8,00,000 and provision for bad debts: 40,000 .in adjustments there is given to write off bad debts amounted to 40,000? who knows answer fast?
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Give" journal entries " in balance sheet there is debtor: 8,00,000 and provision for bad debts: 40,000 .in adjustments there is given to write off bad debts amounted to 40,000? who knows answer fast? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Give" journal entries " in balance sheet there is debtor: 8,00,000 and provision for bad debts: 40,000 .in adjustments there is given to write off bad debts amounted to 40,000? who knows answer fast? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give" journal entries " in balance sheet there is debtor: 8,00,000 and provision for bad debts: 40,000 .in adjustments there is given to write off bad debts amounted to 40,000? who knows answer fast?.
Give" journal entries " in balance sheet there is debtor: 8,00,000 and provision for bad debts: 40,000 .in adjustments there is given to write off bad debts amounted to 40,000? who knows answer fast? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Give" journal entries " in balance sheet there is debtor: 8,00,000 and provision for bad debts: 40,000 .in adjustments there is given to write off bad debts amounted to 40,000? who knows answer fast? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give" journal entries " in balance sheet there is debtor: 8,00,000 and provision for bad debts: 40,000 .in adjustments there is given to write off bad debts amounted to 40,000? who knows answer fast?.
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