Accounts Prep 1

staceyx

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!!

sdv

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.