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Closing stock , bad debt, bad debt reserve, appearing in trial balance indicates what? Please explain in details.

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Question added by nawaz godil
Date Posted: 2015/12/03
Kumari Rashmi Hebbar
by Kumari Rashmi Hebbar , Lecturer , Canara college, Mangalore

closing stock is the remaining stock of the current year which is carried forward to the next year as opening balance. Bad debt is the debt which the company will not be able to recover from the debtor. Bad debt reserve which the company thinks that  it may or may not recover in future and so keeps aside the amount which is doubtful to recover.

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