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

Question

Bineesh Bhasurangan · Answer

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 · Answer

Suspance ac debit

Profit & Loss Ac Credit

irfan shariff · Answer

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