At the time of preparation of financial accounts, bad debts recovered account will be transferred to______________.
Debtors A/c
Profit and Loss A/c
Profit and Loss Adjustment A/c
Profit and Loss Appropriation A/c

Question

At the time of preparation of financial accounts- bad debts recovered account will be transferred to-Debtors A-cProfit and Loss A-cProfit and Loss Adjustment A-cProfit and Loss Appropriation A-c

Toppr Admin · Accepted Answer

At times- a debtor whose account had earlier been written off as bad debts may decide to make the payments-xA0-This is called Bad debts recovered- While journalizing for bad debts- Debtor-apos-s personal account is credited and bad debts account is debited because bad debts are treated as loss to the firm and now when they are recovered it is seen as a gain to the business- So- they are transferred to Profit and Loss Account-xA0-xA0-

At the time of preparation of financial accounts, bad debts recovered account will be transferred to______________.Debtors A/cProfit and Loss A/cProfit and Loss Adjustment A/cProfit and Loss Appropriation A/c

At the time of preparation of financial accounts, bad debts recovered account will be transferred to______________.
Debtors A/c
Profit and Loss A/c
Profit and Loss Adjustment A/c
Profit and Loss Appropriation A/c