doubtful debts

doubtful debts

amounts owed to a company by customers or borrowers which may possibly not be paid because the customers or borrowers are in financial difficulties. In anticipation that many doubtful debts will eventually become BAD DEBTS, a company may make a PROVISION against profits for some doubtful debts. See CREDIT CONTROL.
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There was a sale of the furniture and lease, at Norwood; and Tiffey told me, little thinking how interested I was in the story, that, paying all the just debts of the deceased, and deducting his share of outstanding bad and doubtful debts due to the firm, he wouldn't give a thousand pounds for all the assets remaining.
"We have come up with a proposal that interest on bad and doubtful debts in the case of deposit-taking NBFCs and systemically important non-deposit taking NBFCs shall be charged on tax on receipt basis and not on an accrual basis," she said.
class="MsoNormal"Although the university provided for bad and doubtful debts figure of Sh13 million in accordance university policy that provides for bad and doubtful debts at a rate of 2 percent of the outstanding debts as at the end of the year, the figure appears inadequate taking into account the debtors outstanding for more than three years," says Mr Ouko.
Group CEO Nadda Buranasiri said the airline also expected provisions for doubtful debts to put short-term pressure on full-year earnings.
K-Electric has not been allowed any provision on account of the Doubtful debts in the tariff, however, Bad Debts written off @ 1.69 per cent of K-Electric's assessed sales revenue has been allowed in the base case, the analyst said.
In the accompanying commentary we learnt, ''Selling and administrative expenses increased in the period compared to the prior year, mainly as a consequence of increased provisions for doubtful debts in the FMCG business.''
Banksias financial reports for the financial years ending 30 June 2011 and 30 June 2012, and its half-year financial report for the half year ending 31 December 2011, did not comply with the relevant accounting standards, nor did they give a true and fair view of the financial position and performance of Banksia given the amount disclosed for the provision of bad and doubtful debts was inadequate.
The volume of provisions made by banks to deal with bad and doubtful debts reached EGP 109.383bn at the end of August 2017, compared to EGP 110.218bn at the end of July 2017, a decline of about EGP 900m.
Nepra did not allow K-Electric any provision for including the cost of doubtful debts in tariff, but allowed the company to write off bad debts at the rate of 1.69% of its assessed sales revenue.
Moreover, disallowance on account of Provision for doubtful debts has also been reduced to the tune of Rs.
Rise was attributable to higher salaries and wages expense, outsource job contractor charges and provision for doubtful debts beside normal impact of inflation in Pakistan.
It said that higher charges for bad and doubtful debts and a mining downturn had pushed down profits.