19/02/2017
ABC ltd grant a 15 days credit period to its debtor for purchase of goods for more than rs 15000. S a debtor who purchased good and refuse to make payment after 15 days. S is having a property from which the default amount can be recovered. At the time of finalising the Books of Account Accountant of ABC ltd has made a provision regarding default payment as provision for bad debt.
Are you agree with the treatment of Accountant? Is the treatment done by accountant is correct?Support your answer.