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Asked by Netti Surya Prakash Rao 03/09/2018 Last Modified 04/10/2025

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What is the difference between Bad debts and bad & doubtful debts. What are the legal compliances for the provisions for doubtful debts and bad debts recovered after being written off.

Both are pretty much same.. Bad debts amount to be transferred to P/L a/c (dr side) Baddebts recovered P/L credit side as income Provision on doubtful debts to be deducted from debtors in balance sheet..

Suneha Sharma

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Which statement is prepared to know the profitability of the business?

Profitability of a business entity can be estimated through trading p&l account. Where trading account states the gross profit and p&l account states the net profit earned by the entity.

Sumit

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X has made the following drawings during 2014-15. Calculate interest on drawings @90% .

1.Rs. 4000 withdrawn by X on the first day of every month with effect from 1-5-14 for four month

2. From September 2014 he withdraw RS 6000 pm in the middle for each month till December

3. On 1-2-15 he, withdrew RS 10000

4. On 31-3-15 he withdraw RS 5000.

Yes, the interest rest must be 9% to achieve the correct answer,. May be a typing mistake.

Shilpi

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What is matching concept in acvount?

Cost should match with revenue for that period

Harender

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What will be the effect of change in income on giffin goods and normal goods ?

Giffen goods are a special kind of inferior products in which demand increases when price increases. But in the case of income changes, there's an inverse relationship between market and income. With an...

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Bank Reconciliation Statement

In the given chapter to solve a sum we are given a cash book and another thing is bank pass book. and there is some miss match so we need to come to a conclusion that the same miss match is. We can...

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