Aging
Thursday, March 26, 2009
Aging means to identify and make catagories of companys receivables / payables into desired periods like day, months, or years.
For example: if a companys total receivable is amounting to Rs.100.000 Million. We can make aging of the said receivable as follows
- 2 months 50.000 Million
- 3 months 20.000 Million
- more the 3 months 30.000 Million
Purpose of doing aging is to take actions to recover the receivables and for accounting point of view to make provision of bad debts , etc
Labels: accounting
posted @ 5:44 PM,
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