Provision for Doubtful Debts in Income Statement
Instead of impacting the Income Statement in one go provision helps businesses create a sinking fund Sinking Fund Sinking funds are funds that are periodically accumulated by the company as reserve. Accounts receivable less provision for doubtful debts. Accounting Cheat Sheet Pdf Debits And Credits Depreciation Learn Accounting Accounting Basics Accounting Education The other examples of provisions are. . In general a bad or doubtful debt incurred in any trade profession or business proved to the satisfaction of the HKIRD to have become bad during the basis period for a year of assessment is deductible. Other debtors less provision for doubtful debts. Partially or fully irrecoverable debts are called bad debts. Any bad debts arising on loaned money is deductible if it was lent in the course of a money-lending business. So the effect is u ve debited the expenditure and this provision for bad debts will be shown in the liabi...
