If actual bad debts are more than the provision for bad debts, then there will be a_____________?

Accounting Mcqs 11/11/2023

A. Credit balance of Provision for Bad Debts Account
B. Debit balance of Provision for Bad Debts Account
C. Debit balance of Bad Debts Account
D. Debit balance of Discount on Debtors Account

Provision for Bad Debts Account is created for writing off bad debts. Since the provision for bad debts is a credit balance account, If the actual bad debts exceed the provision created then there will be debit balance of provision for bad debts account.

Related Mcqs:

    Credit purchase of plant and machinery is recorded in which of the following journals?
    A. General journal B. Cash journal C. Purchase journal D. Purchase return journal...
    _______ the withdrawal of cash and goods by the owner of the busienss for his/her personal use?
    A. Depreciation B. Drawings C. Outflow of cash D. Appreciation...
    Period cost include which of the following ?
    A. selling Expense B. Direct labor C. factory overhead D. selling Expenses & administrative expenses...
    Outstanding salaries is shown as___________?
    A. An Asset in the Balance Sheet B. A Liability C. By adjusting it in the P & L A/c D. Both B. and C. above...
    Which of the following is a current liability?
    A. Prepaid expenses B. Trademark C. Discount on issue of shares D. Outstanding Salaries...

Leave a Reply

Your email address will not be published. Required fields are marked *