quick question DFS

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sunshine2010
sunshine2010 Registered Posts: 45 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Hi,

sorry this is a really basic question.

If i need to create a prov for bad debt i will take it off trade receivables in statement of financial position would i also make it an expense in icome statement ?

It is not an adjsutment a newly created prov ?

please help :)

x

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  • sammyd22
    sammyd22 Registered Posts: 207 Dedicated contributor 🦉
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    Dr - Provision for bad debt - Statement of Comprehensive Income.
    Cr - Trade Receivables - Statement of Financial Position.

    These are the entries you should make in the adjustments column of your Extended trial balance before Drafting your financial statements.

    Thanks
  • sunshine2010
    sunshine2010 Registered Posts: 45 Regular contributor ⭐
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    sammyd22 wrote: »
    Dr - Provision for bad debt - Statement of Comprehensive Income.
    Cr - Trade Receivables - Statement of Financial Position.

    These are the entries you should make in the adjustments column of your Extended trial balance before Drafting your financial statements.

    Thanks

    ooops i never even thought of the comprehensive income statement.

    Thanks very much. x

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