Maharashtra State BoardHSC Commerce 12th Board Exam
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State Whether the Following Statement is True Or False. - Book Keeping and Accountancy

MCQ

State whether the following statement is True or False.

Discount allowed to debtors is called as bad debts.

Options

  • True

  • False

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Solution

False

Explanation: The amount that is not recoverable from the debtors is termed as bad debts. It is a loss for the firm. On the other hand, discount may be allowed to debtors in case of early payment.

Concept: Effects of Adjustments-Bad and Doubtful Debts
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