Hi,
I had a doubt of how to solve the sums in which we have given the Opening Balance of Accounts receivable and Provision for doubt debt and written off bad debts, and Also we have information about the Current year Accounts receivable and provision of doubt debt and also written off – we have to find out the BAD debt expenses.
Accounts receivable account to balance BD is the opening balance of accounts receivable by balance CD is the closing balance of accounts receivable. Now provision for doubtful debts account by balance BD is the opening balance of bad debt provision that has been created and to balance CD is the closing balance of bad debt provision. Now the bad debt provision for the current year must have been shown in the debit side of profit and loss account which means the entry that has been done is profit and loss account debit to provision for bad debt account. Post it to bad debts account, by profit and loss account. Now you will get a balancing figure in the provision for doubtful debts account, to debtors or accounts receivable balancing figure which is the bad debt expense for the current year. Now post the same in 2 debtors account by provision account. Now you will see here that you have made the entry of creation of provision in the current year which is profit and loss account debit to provision for doubtful debts and at the same time you have calculated the bad debt expense which is the balancing figure and you have also written off the debtors balance by the bad debt expense for the year by making the entry provision debit to debtors account.