Question

journal entry for provision for discount on debtors and creditors.
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Answer 1

Answer:

The double effect of Provision for Discount on Debtors is:

It is shown on the debit side of Profit and Loss Account. 2. It is shown as deduction from Debtors in Balance Sheet. But remember the amount of Provision is calculated only after deducting the amount of additional Bad Debts.

Answer 2

Explanation:

The double effect of Provision for Discount on Debtors is:

• It is shown on the debit side of Profit and Loss Account.

• 2. It is shown as deduction from Debtors in Balance Sheet. But remember the amount of Provision is calculated only after deducting the amount of additional Bad Debts.

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