Adjusting the provision of general bad debt

Oct 20, 2011
Reaction score
Hi all,

Well I have searched high and low through books and the internet but I cannot find my answer, so I thought who better to ask than those brilliant minds of the accountant forums.

Here’s my problem:

I need to adjust the provision for general bad debt to 3% of the remaining total debtors.
The total debtors are £94,500 and the general bad debt provision is currently £2,000.

My attempt at working it out was to do £94,500 x 3% = £2,835 but I have my doubts that this is right. If it is please confirm and i am happy, if it’s not PLEASE would somebody put me out of my misery and show me how to work it out.



Apr 28, 2011
Reaction score
The general provision does need to be £2,835 (£94,500 x 3%).

As the general bad debt provision is currently £2,000, you would need to make the following adjustment:

CR General bad debt provision - £835
DR Bad and doubtful debts (P&L) - £835

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

New Zealand Provision of doubtful debts and bad debts 1
Provisioning on bad/impaired credits 2
Provision for Doubtful debts 1
bad debt or theft? 18
Bad Debt and moved out of the country 3
New Zealand General Ledger adjustments 1
writing off bad debt 2
Writing off Bad Debt 0