Multiple choice

A bad debt of Rs. 770 is written off. The correct entry is

  1. Bad debts A/c Dr 770
    To debtor's A/c 770
  2. Cash A/c Dr 770
    To debtor's A/c 770
  3. Debtors A/c Dr 770
    To bad debts A/c 770

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Bad debts is a loss and loss is always debited. Since debtors is an asset, and it has decreased, which means it has gone out, so we would credit debtors.

Keep practicing — related questions