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If a borrower is declared bankrupt then in which head BAD DEBTS of the borrower would be showed at the end of the year in the books of borrower?

Accounting Year End Accounts Year End Close Bank Accounting
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Question added by Faisal Shahzad , Branch Operation Manager , Al Baraka Bank (Pakistan) Limited
Date Posted: 2014/04/03
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Amit Falnikar
by Amit Falnikar , Group Finance Manager , Transmak Dewatering Services LLC

Funds would be written off the receivables in the lender's books. As per concept of prudence, following entry would be passed in the books of a lender:-

Dr. Bad-Debts expenses                                         xxx

Cr. Borrower (Receivable)                                             xxx

 

 

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