A. Debit Profit and Loss Account and deduct the provision from debtors
B. Credit Profit
Related Mcqs:
- Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Adjustment would involve?
- If actual bad debts are more than the provision for bad debts, then there will be a_____________??
- The entry for creating a Provision for bad debts is_____________??
- Bad debts recovered account will be transferred to______________??
- In the books of the drawer, the accounting treatment involved on receipt of a bill of exchange duly accepted by the drawee is??
- The annual financial statement of the estimated income and expenditure for the ensuring year is known as
- Which of the following statements is incorrect regarding capital account??
- Revenue receipts are shown in___________??
- If debit balance is greater than creadit balance then the account blance will be__________??
- The normal balance of capital account is_____________??
