what will be the treatment of bad debts in realisation a/c??

Dear Student

Bad debts would not be separately treated in realisation account . Realisation account would be debited by total amount of debtors and it would be credited by total amount realised from those debtors , the difference would automatically adjusted in realisation account .

Fro E.G Total Debtors Rs 1,00,000/- Bad debts Rs 20,000/- Debtors Realised Rs 80,000 /-
Here we would Debit Realisation account by 1,00,000 (Total debtors) and credit Realisation A/c by 20,000/- (Cash realised) the difference of 20,000 (Bad Debts) would automatically accounted in realisation.


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