CBSE Class 11-commerce Answered
5) Why provision for boubtfull debt is created ?
Asked by sntshtrk530 | 11 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 | 12 Dec, 2017, 10:46: AM
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