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Bad Debts And Bad Debts Written Off Estimated Bad Debts Expense Or Doubtful Debts or Uncollectible Accounts Expense is your estimated value based on the perce n tage of either Sale s or closing balance of Accounts Receivable (Debtors) that such percentage of sales or accounts receivable may or may not be recovered from the customers. Bad Debts is your actual expe nse or loss as it is certain that it will not be collected from customers for sales made so there is a need to write off such bad debt to get updated value of accounts receivable and as a result    Bad Debts Written Off are recorded i n Income Statement and deducted from Accounts Receivable / Debtors on balance sheet.     Estimated B ad debts expense journal entry is made by debited to bad debts expenses (Doubtful Debts) account and credited to Allowance for Doubtful Accounts / Provision for Doubtful Accounts while the entry for actual bad debts expe nse  that  needs to be written

Sales Voucher And Cash Receipt Voucher A Sales Voucher is prepared for Credit Sales Transactions created with customers and it is issued to the buyer by the company as a proof of purchase while a Cash Receipt Voucher is used to show cash received transactions made with customers either by cash or check / cheque and it is issued upon receiving cash or check from customers. Sales Voucher shows the details of Credit Sales i.e., price of goods or services, mode of payment, etc., while cash receipt voucher shows the cash receipts details such as the amount of cash or check, account number, etc.

Why Petty Cash Voucher Is Prepared? Petty Cash Voucher is prepared to co ntrol the disbursement of petty cash payments from the Petty Cash Fund. The petty cash voucher co ntains the date of disbursement, the amount of disbursement, name of the person to whom the disbursement (payment) is made, kind of expenses charged for the period and the si g nature of the perso n who authorized the use of such disbursement.

Co nversion method is the process of changing the preparation method of B ooks of Accounts from Single Entry System to Double Entry System . Under Single Entry System, only Cash Book , individual accounts, statement of affairs are prepared but under double entry system, we prepare Trial Balance , Trading & Profit And Loss Account   or Income Statement and B alance Sheet with the the help of b ooks of accou nts. Steps To Convert books of accounts into Double Entry System of B ookkeeping Following steps are taken to convert single entry system into double entry system: 1. Firstly, we prepare statement of affairs at the beginning of the period 2. All the accounts except Accounts Receivable / Debtors , Accounts Payable / Creditors , Cash & B ank accounts appear in the statement of affairs must be debited or credited in the relevant ledger accounts. 3. From cash book, posting to impersonal accounts i.e., Cash Purchases, Cash Sa