Question

increase in provision for doubtful debts will be shown in: *​

Answer 1

$Answer$

The effects of provision for doubtful debts in financial statements may be summed up as follows: (1) Income Statement: Only change (increase or decrease) in provision for doubtful is shown in the income statement. When increase then expense (deducted from profit) and when decrease then income (added in profits).

Answer 2

increase in net profit