The types of debt

[ Blog ]
The Committee established that sell term (on account) clients may face some problems when collecting debts owed by debtors in terms of the debtor's inability to pay the amounts due, or part thereof, as a result of لافلاسه, death or not.

The types of debt
at the end of the financial period the facility inventory and debtors account debt division into three sections as follows:

Good Debt:
debt that expects established amounts owed by debtors collection regularly and on time, the holders of such debt are known to the established as a result of the previous dealings with them that they pay what they paid regularly.
Bad debt:
a debt which expects established from its inability to collect all or in part, through previous experiences with them not to their sight in the deadlines, or receiving the news or a rumor more Haltingly debtor financially or otherwise.
Bad debt:
Debt relief, which is already established by their lack of collected as a result of the bankruptcy of the debtor or his death or not.
The accounting treatment of bad debt
at the end of the year is established valuation of doubtful debts prove 341,724 as possible according to the principle of precaution, which takes the expected losses into account when preparing the financial statements, the first accounts on behalf of the debt expenses doubtful debts be on the side of the debtor, and the second account on behalf of the designated debt of doubtful debts recorded in the side of the creditor as follows:

debtor and creditor statement
xxx from h/CP.debts of doubtful debts
xxx to h/dedicated debts of doubtful debts the
value of bad debts
at the end of the account will be closed and the debt doubtful debts expenses in the profit and loss account (income): summary

statement
of the debtor and the secured creditor xxx h/gains and losses.Summary of income)
xxx to h/CP.debts of doubtful debts)
closing the pocket money doubtful debts In the profit and loss account,
although an account designated for doubtful debts of the nature of the judgment, but for the purposes of disclosure appears in the budget in the assets side ومخصوما from the balance of debtors, as follows:

List the financial center of ...
The amount of assets, property rights and obligations in the amount of
assets
xxx debtors
(xxx) Debts of doubtful debts
debtors xxx
xxx xxx net total assets total obligations and property rights
Note: The expense of the debtors to net worth, representing the value of good debt, which is expected to be collected from the customer during the next financial period.

Ways to identify the proportion of bad debts
after the audit of the accounts of debtors, the value of bad debts based on experience and the experiences of established in previous years when dealing with the debtors, there are several ways to assess and identify doubtful loans, including on the basis of the net sales futures, and appreciation for the ASA


Share :

Add New Comment

 Your Comment has been sent successfully. Thank you!
Error: Please try again