If The existing provision for bad debts is to be increased by 50? than how we will show in revolution account
dear student,
since provision for bad debts is a liability it is credited when it has to be increased. Following entry is passed to increase provision for bad debts.
It will come on debit side of revaluation account.
regards.
since provision for bad debts is a liability it is credited when it has to be increased. Following entry is passed to increase provision for bad debts.
Revaluation A/C DR | 50 | |
To provision for bad debts | 50 | |
(being provision for bad debts increased) |
It will come on debit side of revaluation account.
regards.