debit
For a provision you initially debit cost and credit provision. When the provision is released you debit your provision and credit cash. The provision should be adjusted to present value on your balance sheet.
Provision for bad and doubtful debt is not go to profit and loss account, and it is go to balance sheet.
What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?
yeah may be because provision for doubtful debt is a reserve which has been created against the debtors which is an estimated loss and also the journal entry is [Debit] Provision for bad and doubtful debts a/c [Credit] Debtors a/c and here this loss is debited and hence it can be treated as nominal a/c but while preparing trial balance it has a credit balance as its a liability
when there is decrease in provision of doubtful debts the double entry to record it would be ; debit : provision credit: expense /bad debts
For a provision you initially debit cost and credit provision. When the provision is released you debit your provision and credit cash. The provision should be adjusted to present value on your balance sheet.
Provision for bad and doubtful debt is not go to profit and loss account, and it is go to balance sheet.
Provision entries are accounting entries made to account for expenses or liabilities that are probable but uncertain in amount. They are done in journal entries to ensure that expenses are matched with the revenues they generate in a specific accounting period, in order to provide a more accurate representation of a company's financial position and performance.
What kind of an account (asset, liability, etc.) is Allowance for Doubtful Accounts, and is its normal balance a debit or a credit?
no, provision of depreciation iscredit in nature. And thus it should be shown at the credit side at trial balance.
yeah may be because provision for doubtful debt is a reserve which has been created against the debtors which is an estimated loss and also the journal entry is [Debit] Provision for bad and doubtful debts a/c [Credit] Debtors a/c and here this loss is debited and hence it can be treated as nominal a/c but while preparing trial balance it has a credit balance as its a liability
when there is decrease in provision of doubtful debts the double entry to record it would be ; debit : provision credit: expense /bad debts
it is a debit balance because it decreases owner's equity, which has credit balance.
credit
Premises is an asset for business and like all other assets of business which has debit balance as normal default balance it also has debit balance.
debit balance
debit