Want to see ALL questions on this topic?

Upgrade to PLUS+ for €35 to see all past questions

You need to have an account to continue

You need to have an account to continue

Trading Accounts and Balance Sheets
Aineoh Junior Cert Business Studies — 10/05/16 14

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

wylde1 — 05/05/16
sorry i do art xx
jade1999_x — 05/05/16
It's a current asset :)
paulfarren — 05/05/16
Yeah its a negative current asset
SryanBruen — 05/05/16
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.
SryanBruen — 05/05/16
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.
paulfarren — 07/05/16
No SryanBruen youre wrong. PROVISION for bad debts goes into the profit and loss. Its a negative current asset put directly beneath debtore
SryanBruen — 07/05/16
No I am not wrong, go to the marking scheme.
Samtotty — 07/05/16
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
SryanBruen — 07/05/16
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.
Samtotty — 07/05/16
I agreed with you....
clark13 — 07/05/16
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
DarParty — 10/05/16
sryan your a sexy cracker :) good song and youtube
Chris2fer — 10/05/16
It goes in the Less Expenses, nothing else
SryanBruen — 10/05/16
LOL DarParty
Uploading attachment...