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Question

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

A
Profit or Loss A/c
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B
Trading A/c
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C
Cash A/c
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D
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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