Bed Debt and Provision.

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<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Star</i>
<br />Pleaes rephrase the two suggested method, i cant understand the query.!
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Dear Friend.

I asked that what should we have to do in respect of passing the genral entry for adjustment of provision for bed debt account.
let suppose that; if there is an opening blnc in provision account is RS 20,000 / and this year provision is being maintain 5 % on closing blnc of debtors which is Rs, 600,000/ after write-off bed debts.

Meance, this is closing blnc of provision account is Rs. 30,000/-.

My question is that

1) should we charge the provision directly into P/L ACCOUNT by
Passing the below General entry.

P/L ACCOUNT DR 10,000
Prov. for bed debt Cr 10,000



2) should we adjust this prov. balance by passing the below general
entry.

Bed Debt Expence DR 10,000
Prov. for bed debt CR 10,000


What is the best rout to adjust this provision blnce in both above cases.



Regard




UMAR.