If reserve for bad and doubtful debts is mentioned in the question of Funds Flow Statement Pre...........

General Accounting Principles Fund flow statement

If reserve for bad and doubtful debts is mentioned in the question of Funds Flow Statement Preparation, it can be shown as

In the schedule by deducting from total debtors under current assets

In the schedule separately under the heading of current liabilities

Both a & b

None of the above

Treatment of provision for bad debt

Either, the amount of such provision (say, provision for bad debt) may directly be deducted from the asset concerned, (here, from Sundry Debtors) while calculating the schedule of changes in working capital, i.e. net amount is to be shown in the statement.
?Or, the current assets should be shown at its gross amount and the amount of such provision may be added with the current liabilities and thereafter the same will be deducted from the total current assets while computing the schedule of changes in working capital.