坏账 / 呆账 / 烂 Chapter 9

账
Bad Debts, Bad debts Recovery, &
Allowances for Doubtful Debts
Bad Debts
= Debts which is definitely uncollectible 肯定不能收回的债务
= When the debts have turned “bad”, the will not have any
value
= Thus, it has to be written off/ cancelled out from debtors
account and charged as a loss / an expenses to the business
Accounting Entries for Bad Debts
 Debts being written off as uncollectible
Dr. Bad Debts ;
Cr. Accounts Receivable

 Close and transfer bad debts to Profit and Loss account

Dr. Profit and Loss ;
Cr. Bad Debts
过世
Trade Receivable - Ricky

Bad Debts
 摘录，非完整的
Dr. 费用 Profit and Loss (extract) Cr. 收入
 Balance b/d

Trade Receivables - Ricky

2018 2018
Mar 1 Balance b/d XX Mar 15 Bad Debts XX
 Trade Receivable - Ricky
2018 2018
Mar 1 Balance b/d XX Mar 15 Bad Debts XX

Bad Debts
2018
Mar 15 Trade Receivable-Ricky XX

Debts being written off as

uncollectible
Dr. Bad Debts ;
 Bad Debts
2018 2018
Mar 15 Trade Receivable-Ricky XX Mar 31 Profit and Loss XX

Dr. 费用 Profit and Loss (extract) Cr. 收入

2018
Mar 31 Bad Debts XX
 Trade Receivable - Ricky
2018 2018
Mar 1 Balance b/d XX Mar 15 Bad Debts XX

Bad Debts
2018 2018
Mar 15 Trade Receivable-Ricky XX Mar 31 Profit and Loss XX
 Trade Receivable - Ricky
2018 2018
Mar 1 Balance b/d XX Mar 15 Bad Debts ① XX

Bad Debts
2018 2018
Mar 15 Trade Receivable- ① XX Mar 31 Profit and Loss ② XX
Ricky

Profit and Loss (extract)

2018
Mar 31 Bad Debts ② XX
Accounting Entries for Bad Debts
 Debts being written off as uncollectible
Dr. Bad Debts ;
Cr. Accounts Receivable

 Close and transfer bad debts to Profit and Loss account

Dr. Profit and Loss ;
Cr. Bad Debts
 Bad Debts 坏账 / 呆账 / 烂
账
= Debts which is definitely uncollectible
= to be charged as a loss / an expenses to the business
 Sales Ledger
Account Receivable - Ong

General Ledger
Bad Debts

Profit and Loss (extract)

 Sales

Bad Debts

Account Receivable - Ong

2017 2017
Jan 1 Sales XX Mar 5 Bank XX
Dec Bad Debts XX
31
 Account Receivable - Ong
2017 2017
Jan 1 Balance b/d XX Mar 5 Bank XX
Dec Bad Debts XX
31

Bad Debts
2017 2017
Dec 31 Account Receivable-Ong XX Dec 31 Profit and Loss XX

Debts being written off as

uncollectible
Dr. Bad Debts ;
 Bad Debts
2017 2017
Dec 31 Account Receivable-Ong XX Dec 31 Profit and Loss XX

Profit and Loss (extract)

2017
Dec Bad Debts XX
31
 Account Receivable - Ong
2017 2017
Jan 1 Balance b/d XX Mar 5 Bank XX
Dec Bad Debts XX
XX 31 XX

Bad Debts
2017 2017
Dec 31 Account Receivable-Ong XX Dec 31 Profit and Loss XX
In the books of Yes Sales Ledger
Trading: Trade Receivable - Sam (5 行 )

General Ledger
Bad Debts (5 行 )

Profit and Loss (extract) (5 行 )

 Balance b/d

RM 4,000 x 20%

40%

Trade Receivable - Sam

2017 2017
Jan 1 Balance b/d XX Apr 4 Bank XX
Sep 1 Bank XX
1 Bad Debts XX
 Trade Receivable - Sam
2017 2017
Jan 1 Balance b/d XX Apr 4 Bank XX
Sep 1 Bank XX
1 Bad Debts XX

Bad Debts
2017 2017
Sep 1 Trade Receivable-Sam XX Dec 31 Profit and Loss XX
 Bad Debts
2017 2017
Sep 1 Trade Receivable-Sam XX Dec 31 Profit and Loss XX

Profit and Loss (extract)

2017
Dec Bad Debts XX
31
 Trade Receivable - Sam
2017 2017
Jan 1 Balance b/d XX Apr 4 Bank XX
Sep 1 Bank XX
1 Bad Debts XX
XX XX

Bad Debts
2017 2017
Sep 1 Trade Receivable-Sam XX Dec 31 Profit and Loss XX
小结：

20%

40%