Provision for Doubtful Debts
jewels.p
Registered Posts: 1,758 Beyond epic contributor 🧙♂️
Should you post Prov for Doubtful Debts as an overhead in the P & L Account?
I thought I read somewhere that as it was not definite that these accounts would not be paid you only put it in the B.S (deducted in the Current Assets Debtors) until you were sure it would not be paid.
But just read the exact opposite:confused1:
I thought I read somewhere that as it was not definite that these accounts would not be paid you only put it in the B.S (deducted in the Current Assets Debtors) until you were sure it would not be paid.
But just read the exact opposite:confused1:
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Comments
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The provision = a liability, so it sits in the BS.
Any adjustments are sent to the P&L0
