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What is bad Dept

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What is bad Dept

Posted by Ansh Tiwari 4 years, 3 months ago

CBSE > Class 11 > Business Studies

1 answers

Yogita Ingle 4 years, 6 months ago

Bad debts are those items of charge on the profits of the company that indicate the sums of money that could not be recovered from a debtor, during the year. In order to record the number of bad debts correctly, such sum is charged to the profit and loss account and deducted from the value of debtors for that year, so that the amount represents money that is actually expected to accrue from the debtors.

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