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Whats the difference between loss and bad debts in accounts?

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تم إضافة السؤال من قبل Ghada Sameer , Project Manager and media executive , CQA
تاريخ النشر: 2015/07/06
lakshminarasimham mallareddi
من قبل lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Loss is in business that is in totality means total expenses exceeds total income . In particular Bad Debts refers to defaulters in paying money to the firm.

Razia Begum
من قبل Razia Begum , Catering Associate , Compass Group

loss is not a gain on sales of product or selling price lower than cost price and bad debts are the money which debtors cant pay on time thus company declares bad debts which in some cases are recovered

MUHAMMAD ALI
من قبل MUHAMMAD ALI , CASHIER , RAJGAN EXCHANGE COMPANY

BAD DEBTS IS THOSE EXPENSES WHICH IS MAINTAINED FOR THOSE ACCOUNT RECIEVABLES WHICH COMPANY THINK THAT THE MONEY WAS NOT RECOVERED FROM.

LOSS IS WHILE COMPANIES EXPENSES EXCESS OVER INCOME.

Mohammed Asim Nehal
من قبل Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Anything sold below cost price is loss whereas from the sold items if money is outstanding and almost certain that the amount will not be received/ paid then it is bad debts.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

Loss is the excess of expenditure over revenue whereas bad debts refers to receivables that has exceeds its credit period and all efforts coupled with reliable data proofs that such amount can not be received or claimed.

Ilyas Khan
من قبل Ilyas Khan , Senior Accountant , H.H. Shaikh Rashid Al Mak. Pak Sch. Dubai

Expenses more than revenue is called Loss and Bad Debt is the amount which is not yet paid by the buyer. Eventually, Bad Debts are write-off and treated as expenses in P&L. 

IBRAHIM MOHAMMED - CMA
من قبل IBRAHIM MOHAMMED - CMA , Senior Accountant , Ajal Finance & Investment K.S.C.C

In business various kind of losses occurs due to bad decision and lack of market knowledge.  the loss are categorized into two :

operation loss : company products didn't recover it's cost and resulted into operation loss.

book loss : assets value carrying more than market value are impaired are called book loss.

 

bad debts : The receivable amount which is noncollectable are treated as bad debts and do companies take provision on receivable to be on safe side to record bad debts expense uniformly every year.

mehfooz alam khan habib khan
من قبل mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Loss means your expenses are more than your earnings. And bad debt means any company or firm bankrupt, in this case all recieable from that company will be bad debts.

Jude Ali
من قبل Jude Ali , Operations Supervisor , Sushi Bar

While 'loss' may mostly be conceived as the net difference (negative) in expenses incurred resulting from economic transactions to the value in income (actual or perceived) resulting from same transactions, 'bad debt' - on the other hand - arises when an account receivable is no longer economically viable to be considered a claim; which informs why provisions are made for debts when they become doubtful.

Badar Khan
من قبل Badar Khan , Accounts cum administrative assistant , Al Qassimia Drivng Training Centre.Sharjah

bad debts arises when a company is not sure whether they will recover their receivables whereas in loss you are sure that the amount cannot be rccovered

Mehboob Ali Laghari
من قبل Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union

Loss is declared LOSS! Bad debts are risk of LOSS!

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