Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

If we have made a provision against doubtful debts of AED 500. After year end we received AED 200 what entry we will pass now?

user-image
Question added by Muhammad Fiaz , GROUP MANAGER ACCOUNTS, FINANCE AND TAX , SMPL Group of Companies
Date Posted: 2014/06/19

1st entry - when amount received from customer: Receipt voucher, debit Bank A/c and credit Customer A/c AED200.

2nd entry - adjust this amount against provision for doubtful debts: Journal voucher, debit Provision for doubtful debts A/c and credit Bad debts expenses A/c AED200. (as bad debts recovered)  

George Panayides
by George Panayides , Financial Controller , Joannou & Paraskevaides (Saudi Arabia) Ltd

No entry necessarily. A general provision may not be specific to indvidual debtors. Debtors need to be overall reassess to consider if the general doubtfull debts provision is reasonable.

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.