12-01-2004, 06:51 AM
hi..
dear..this is not possible....coz it will not be useful...consider u have debtors of 50000 at the begning of the year and u ll make provision for bad debts on the basis of that 50000 at 10%
but at the year end if u ll have debtors amounting to 85000...then what u ll do...
do u think that to compare the provision of bad debts of 10% of 50000 and 10% of 85000 will be useful...
also making some provision on some balance at the start of year is senseless to compare it with the provision of year end balance
Ace
dear..this is not possible....coz it will not be useful...consider u have debtors of 50000 at the begning of the year and u ll make provision for bad debts on the basis of that 50000 at 10%
but at the year end if u ll have debtors amounting to 85000...then what u ll do...
do u think that to compare the provision of bad debts of 10% of 50000 and 10% of 85000 will be useful...
also making some provision on some balance at the start of year is senseless to compare it with the provision of year end balance
Ace
