Question

Adjustment if bad debt given in trail balance in final account

Answer 1

If there is an adjustment for bad debts then that amount of adjustment must be deducted from Debtors in Assets and then the adjustment value must be recorded again in Profit &a Loss account.

Example: Bad debts write off as 2000(adjustment)

Debtors - 30,000(Trail balance, final accounts)

Then Debtors=(30,000-2000) =28,000

&I then in p&l a/c debit side:

To bad debts a/c 2000