what will be the entry of "bad debts amounted to Rs 2,000 were to be written off" in revaluation?????

The bad debts are a loss to the firm. It will reduce the amount in the Debtors A/c which is an asset account. So, on decrease it should be credited. But, here you should debit Revaluation A/c (instead of Bad Debt A/c).

Journal Entry:

Revaluation A/c Dr. Rs. 2,000

. . To Debtors A/c . . . . . . . . . . . .Rs. 2,000

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bad debts of Rs.2,000 will become an income because now it is to be written off hence it will be recorded at the cr. side of revaluation A/c & on the other hand it will not affect sundry debtors they will be recorded at the book value in assets side of B/s.

Journal Entry:

Bad debtsA/c   Dr.            2,000

         To Revaluation A/c                          2,000

(being bad debts written off)

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Hi Piyush,

Writing off a loss doesn't mean that it has become an income. It means the cancellation of that amount from the books of accounts. Generally, the bad debts are written off by way of transferring to the Profit & Loss A/c.


In this case, a direct transfer of Rs. 2,000 from Debtors A/c can be made without the use of Bad Debts A/c. Also, transfer is to be made to the Revaluation A/c instead of the Profit & Loss A/c.


In either case, the A/c to which the amount is transferred is to be debited, not credited.


Hope it clarifies the concept.

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revaluation a/c dr.          2000

        to bad debt a/c                      2000

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