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How do you treat recoverable of bad debts in the of accounts which you have already write off in previous year?

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Question added by irfan shariff , ACCOUNTANT , ASIA & AFRICA
Date Posted: 2016/06/18
Bineesh Bhasurangan
by Bineesh Bhasurangan , SR. ACCOUNTANT , A & A ASSOCIATE LLC

If the bad debt is recovered, that amount should be treated as other income and shown in the P&L account.

Entry is :   Cash A/c Dr.

                 To Bad Debt Recoved(other Income) 

               

samir joshi
by samir joshi , senior , Hanuman provisional Supply P. Ltd.

Suspance ac debit 

      Profit & Loss Ac Credit

irfan shariff
by irfan shariff , ACCOUNTANT , ASIA & AFRICA

journal voter has to pass from party account debiting and the bad debts account credited 

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