The entry for creating provision for doubtful debts is debit and credit provision for doubtful debts account.

Profit or Loss A/c

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Trading A/c

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Cash A/c

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Bank A/c

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Solution

The correct option is A Profit or Loss A/c
Provision for doubtful debts is created out of profits, and therefore profit or loss account is debited.

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Similar questions

Which account is debited while creating a provision for doubtful debts in the books?

Which account is credited while creating a provision for doubtful debts in the books?

What is the entry for creating the provision for doubtful debts?

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