Where do we show Provision of bad debts in final accounts if given in adjustments?
I.Debit side of P&L
II.Credit side of P&L
III.Deduct from Debtors in Balance Sheet
IV.Add to Debtors in Balance Sheet
A)I and III
B)II and IV
C)II and III
D)I and IV

Question

Quizplus · Accepted Answer

The provision for bad debts is shown on the debit side of the Profit & Loss Account as an expense, and it is deducted from the Debtors in the Balance Sheet to show the net amount expected to be realized.

Where Do We Show Provision of Bad Debts in Final