Please wait...
Contact Us
Contact
Need assistance? Contact us on below numbers

For Enquiry

10:00 AM to 7:00 PM IST all days.

Business Inquiry (North)

Business Inquiry (West / East / South)

OR

or

Thanks, You will receive a call shortly.
Customer Support

You are very important to us

For any content/service related issues please contact on this number

022-62211530

Mon to Sat - 10 AM to 7 PM

why provision for doubtful debt is created

Asked by sntshtrk530 6th November 2017, 8:07 PM
Answered by Expert
Answer:
Doubtful debt is the type of debt where the debt collection is not certain. It is estimated based on trend of collecting the debt from debtors. It is assumed that certain percentage of the debtors may default ato make payment at the stipulated time period. So it is necessary to make sufficient provision for such doubtful debts for true ascertainment of profit or loss. 
Answered by Expert 7th November 2017, 9:53 AM
Rate this answer
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

You have rated this answer /10

Your answer has been posted successfully!

Latest Questions

IIT JEE Main Mathematics
qsnImg
Asked by mnsdewari 3rd April 2020, 6:52 AM
IIT JEE Main Physics
qsnImg
Asked by ashutosharnold1998 3rd April 2020, 1:25 AM
Junior II English
Asked by irshadakhter81211 2nd April 2020, 11:48 PM

Chat with us on WhatsApp