Depreciation & Provision For Doubtful Debts

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
I realise I need to brush up on depreciation and provisions for doubtful debts, does any one have any notes etc that will help it sink in a little more ?
Would you be able to email any to me ???

Janine_Perry@hotmail.co.uk

Cheers :D

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Depreciation & Provision For Doubtful Debts

    Hi Janine.

    The Depreciation in the period is an expense to the P&L.

    The Accumulated Dep'n goes on the Balance Sheet to record the fall in value of the Asset.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Depreciation & Provision For Doubtful Debts

    Provision for doubtfull debts B/s is a credit balance and is allocated in the Balance Sheet under Current Assets as a deduction from the debtors balance.

    Bad debts expense is a debit balance charged to the profit & Loss Account showing the increase from the Closing and Opening Balance.

    Bad debts expense can also be a credit balance if the there is a decrease from the closing and opening balance of Provision for Doubtfull Debts.

    e.g opening balance Provision for Doubtfull Debts 70
    Closing Balance Provision for Doubtfull Debts 90

    Bad debt expense debit balance of 20

    e.g opening balance Provision for Doubtfull Debts 60
    Closing Balance Provision for Doubtfull Debts 35

    Bad debt expense credit balance of 15



  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Depreciation & Provision For Doubtful Debts

    Thanks Scotty & Roy !! (once again Iam sure)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Depreciation & Provision For Doubtful Debts

    There's a few bits n bobs on depreciation and debts on my wiki that might be of use. It's about all I've got up there for FRA at the moment.

    Chris

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