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Why provision for debtor not taken …

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Why provision for debtor not taken into Revaluation a/c .We know that increase in assets and reassessment of liabilities are taken into revaluation but provision is also a liabilities .My ques. is that if no any debtor is bad in one year and we created provision in the beginning of yhe financial yr ,then it is decrease in liability and go to revaluation on cr. Side .But no.

Posted by Saurav Shandillya 6 years, 7 months ago

CBSE > Class 12 > Accountancy

6 answers

Saurav Shandillya 6 years, 7 months ago

But prov for debtor is short term liability .In this case we take in a long term basis

Saurav Shandillya 6 years, 7 months ago

But provision for debtor is already created before .If ques. Say to create prov. ,then we take into revaluation

Saurav Shandillya 6 years, 7 months ago

Again see my ques. ,If no any debtor proved bad in operating cycle period ,but we created prov in opening yr , So can this liability will be take into revaluation?

Talha Sarkar 6 years, 7 months ago

Who is saying you that provision for debtors are not taken into revaluation a/c.. Brother provision for debtors are taken in revaluation a/c

Karan Gr 6 years, 7 months ago

Chapter konsa hai

Saurav Kumar 6 years, 7 months ago

Provision for detor is shown in debit side of revaluation a/c . because provision for debtor is subtracted from debtor amount hence it is libality on firm which is made to cover future loss .so if we create provision for debtor it increases firm liability , so increase in liability then revaluation a/c is debited, according to nominal rule.

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