p&l expenses
In a profit and loss statement, bad debts are recorded as an expense. They are typically included in the "depreciation and bad debt" or "allowance for bad debts" category. This category is a deduction from revenues to reflect the estimated amount of uncollectible debts.
what are the advantages of profit and loss statement?
The debts are treated as expenses in the profit and loss account, being entered on the debit side of the income statement coloums.
A profit loss statement is a statement that summarizes costs, expenses, and revenues. Microsoft office has a downloadable profit loss statement template. The link to this template is http://office.microsoft.com/en-us/templates/profit-and-loss-statement-TC001115484.aspx
A statement of profit and loss is the business income and expense statement which sumarises the total income and expenses coming to the total profit (or loss) of the business which is the defference between the income and expenses.
Profit and Loss Statement
income statement
The business definition of the profit loss statement is a financial statement that explains your costs, expenses and revenues in a specific time period.
Profit & Loss A/c [Debit] Provision for bad debts [Credit]
A profit and loss statement is a summary of how a much money a business has made over a period of time. If one has a very small business, it is possible to create one's own profit and loss statement using software, and one must send this in with the business' tax return. However, the larger the business, the more likely it is that an accountant or bookkeeper will need to create the profit and loss statement.
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Profit & Loss Account is the Statement showing indirect expenses and receivable of a Company where as Balance Sheet is the Statement highlighting Assets and Liabilities of the said Company.
Bad debts are those accounts receivables which have created due to credit sales to customers so if company unable to collect these it will reduce the net profit of company or in case of actual loss it will increase loss amount.