Question

Why provision for doubtful debt subtract from debtor?

Answer 1

Doubtful debt is an expected loss. A doubtful debt may or may not be recoverable. An expected loss need not be treated as loss as a loss before it actually occurs. Such debts cannot be written as bad debt because non -recovery of such an amount is not certain. For such loss, some prov. is made in the form of prov. for doubtful debts.
This is done for the purpose of showing the debtors on the balance sheet. This prov. is created by debiting the P/L account. The prov. so debited in P/L account is then subtracted from the debtors in the balance sheet.