why is provision for dubtful debts created? how is it shown in balance sheet ?Explain
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suppose if you have sold goods on credit to someone . then the debtor may pay money or not . so it is an expected loss . so keeping certain portion of credit sales as bad debts is known as provision for bad debts .
and it is deducted from the Asset side of the balance sheet from debtors.
if u have any doubt u can comment....
and it is deducted from the Asset side of the balance sheet from debtors.
if u have any doubt u can comment....
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