• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App

how should i treat bad debt in IAS1?

given bad debt of 17,500 in the trial balance and in additional information (Allowance for doubtful debt is to increase to 19,080

asked Oct 11, 2017 in IAS 1 - Presentation of Financial Statements by cliff

1 Answer

0 votes
Bad debt and doubtful debts are different, If your TB has bad debts that means you have written ff the debtor from your books. (Dr. Bad debt and Cr. Debtor). But in the case of doubtful debts, debtor is not written off but a provision is created (Dr. Bad debt Cr. Provision for bad debts).
answered Oct 11, 2017 by Malik
so will the provision appear in the statement of profit or loss and comprehensive income account?
Provision (cr.) will appear in the balance sheet. P&L will have the expense in both cases.