Question

how to calculate old provision for bad debts give me an example ​

Answer 1

we don't calculate old provision.

old provision means previous year.

we calculate new provision on debtor

suppose we have 82,000 debtor.

further baddebt is 2,000 & calculate provision for baddebt 10%.

then step 1

in balance sheet assets side

debtor 82,000

deduct 2,000 baddebt

remaining 80,000

create provision 10% on remaining debtor which is 8,000.