5) Why provision for boubtfull debt is created ?

Asked by sntshtrk530 | 11th Dec, 2017, 08:24: PM

Expert Answer:

A firm need to create provision at the end of the accounting year for bad debts which may occur in the preceding year. A part of debts may become irrecoverable from debtors and they are doubtful in the preceding year. Hence the provision for doubtful debts created every year. 

Answered by Tharageswari S | 12th Dec, 2017, 10:46: AM

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