Are bad debts a/c and bad debts recovered a/c same If no, then suppose there were bad debts - Accountancy - Reconstitution- Admission of a Partner

Question

Are bad debts a/c and bad debts recovered a/c same?? If no, then
suppose there were bad debts of 25000 , but later 20000 have been
recovered, so how will the amount of bad debts would be reduced to
5000???

Bharat Maheshwari · Accepted Answer

Dear student, Bad debts and bad debts recovered are two different
accounts Once the bad-debt is recorded whole amount is considered
as loss, and when such bad debts are recovered they are recorded in
different account named bad debts recovered account and considered
as gain in the period and which it is recovered There will be no
specific journal entry for un-recovered bad debts (i e of
â‚¹5,000) Because once we record a loss of
25,000(bad debts) and then we record a gain of 20,000(bad debts
recovered) the difference between the both i e 25000 - 20000 =
5,000 is automatically treated as loss Regards

Are bad debts a/c and bad debts recovered a/c same?? If no, then suppose there were bad debts of 25000 , but later 20000 have been recovered, so how will the amount of bad debts would be reduced to 5000???