All Junior Cert Business Studies posts
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    Trading Accounts and Balance Sheets Aineoh

    Bad debts - goes in fixed assets or current assets part of balance sheet ?

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      wylde1

      sorry i do art xx

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      jade1999_x

      It's a current asset :)

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      paulfarren

      Yeah its a negative current asset

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      SryanBruen

      If it's a "bad debt" (unless you mean "debtors" - current assets), then it goes into the less current liabilities? However to make sure that you do not confuse fixed assets with current assets or vice versa then here's how to know. Ask yourself:

      - How long will the asset be of use to me?

      If it's long-term (buildings, equipment, machinery etc), then it's a fixed asset.

      If it's short-term (cash on hand, debtors etc), then it's a current asset.

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      SryanBruen

      Oh wait sorry it does not go into less current liabilities OR current assets. It does not go into the Balance Sheet at all. It goes into the Profit & Loss Account in the less expenses.

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      paulfarren

      No SryanBruen youre wrong. PROVISION for bad debts goes into the profit and loss. Its a negative current asset put directly beneath debtore

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      SryanBruen

      No I am not wrong, go to the marking scheme.

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      Samtotty

      Increase in bad debts provision goes into p+l. Bad debts provision are a negative current asset. Bad debts are an expense in the p+l. If it happened during the year, minus it from the debtors and put it in as an expense

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      SryanBruen

      See bad debts does not go into the Balance Sheet at all:

      https://studyclix.ie/Content/markingscheme/1/1c7ede6e-fad0-4931-bcb3-b136cf19d3dd/1c7ede6e-fad0-4931-bcb3-b136cf19d3dd.pdf

      Case closed, I'm correct.

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      Samtotty

      I agreed with you....

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      clark13

      Bad debts go in the less expenses on the trading profit and loss, and do not go in the balance sheet unless there is an adjustment

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      DarParty

      sryan your a sexy cracker :) good song and youtube

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      Chris2fer

      It goes in the Less Expenses, nothing else

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      SryanBruen

      LOL DarParty

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      Me

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