State with reasons, whether the following statements are true or false: The provision for bad debts is debited to sundry debtors account.
CA Foundation · Accounting · RTP · September 2024
State with reasons, whether the following statements are true or false: The provision for bad debts is debited to sundry debtors account.
Suggested Answer and Working Notes:
False: The provision for bad debts is debited to Profit and loss Account, in Balance Sheet it is shown either on liability side or deducted from the head debtors.
Topics: Preparation of Final Accounts of Sole Proprietors
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