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Question
Give the word / term or phrase which can substitute the following statement.
The amount which is not recoverable from debtors.
One Word/Term Answer
Solution
Bad debts
Explanation: The amount which is not recoverable from debtors due to their dishonesty, insolvency or death is regarded as bad debts for the firm. It is a loss to the firm and must be written on the debit side of the Profit & Loss Account.
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Effects of Adjustments-Bad and Doubtful Debts
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RELATED QUESTIONS
The amount which is not recoverable from the debtors.
| Group ‘A’ | Group ‘B’ |
| (a) Bad debts | (1) Dishonour of cash bill |
| (b) Excess of assets over liabilities | (2) Indicates profit of joint venture |
| (c) Notary public | (3) Indicates loss of joint venture |
| (d) Credit balance of joint venture a/c | (4) System software |
| (e) Operating system | (5) Drawings |
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(6) Capital |
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(7) Recoverable amount from debtors |
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(8) Non-recoverable amount from debtors |
Answer in one sentence only.
What is bad debts?
State whether the following statement is True or False.
Discount allowed to debtors is called as bad debts.
