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Question
Give the word / term or phrase which can substitute the following statement.
The amount which is not recoverable from debtors.
One Word/Term Answer
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Solution
Bad debts
Explanation: The amount which is not recoverable from debtors due to their dishonesty, insolvency or death is regarded as bad debts for the firm. It is a loss to the firm and must be written on the debit side of the Profit & Loss Account.
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