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Introduction to Partnership and Partnership Final Accounts — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsBook Keeping & AccountancyIntroduction to Partnership and Partnership Final Accounts2 Marks
Question
Discount allowed to Debtors is called as Bad debts.
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Answer

This statement is False.
Discount allowed to Debtors is an expense for the business while Bad debts mean irrecoverable amount from debtors and is a loss to the business. Thus, both have different meanings so, we cannot say that discount allowed to debtors is called as Bad debt.

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