Question

How to recognize a reversal of a debtor impairment? What should be the entries in this regard?

Answer 1

You should have recognized the impairment loss in the income statement and in the balance sheet as follows:

Dr Impairment loss (income statement)
  Cr Asset (Balance sheet)

Now you have to reverse the provision & recognize an income

Dr Asset (Balance sheet)
  Cr Other income (income statement)

Hope it is clear to you now