Accounts Prep 1

staceyx
staceyx Registered Posts: 14 Regular contributor ⭐ ? ⭐
Hi...does anyone know where Irrecoverable debts go on the Balance Sheet or the Profit and Loss? And whether it is a debit or a credit..I am getting rather confused!!

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  • sdv
    sdv Registered Posts: 585
    staceyx wrote: »
    Hi...does anyone know where Irrecoverable debts go on the Balance Sheet or the Profit and Loss? And whether it is a debit or a credit..I am getting rather confused!!

    Irrecoverable debts = bad bebts

    you will have an Irrecoverable debts accounts which is an expense account and will go into Income Satement (P&L a/c) under the expenses.

    Normally all the expenses are a debit balance.

    however, beaware that a doubtful debt account (an exepense a/c) can also end up in a credit balance if the Adjustment doubtful debt accounts is reduced and the balance in the doubtful debt is less the adjustment amount.
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