Recovery of Bad Debts written off

Bad debts written off are verified with reference to relevant correspondence and proper authorisation.

1.  Ascertain the total amount lying as bad debts.
2.  Ensure that all recoveries of bad debts have been properly recorded in the books of account.
3.  Examine notification from the Court or from bankruptcy trustee. Letters from collecting agencies or from debtors should also be seen.
4.  Check Credit Manager’s file for the amount received and see that the said amount has been deposited into the bank promptly.
5. Vouch acknowledgement receipts issued to debtors or trustees.