What are the four classifications of Bad and Doubtful Debts as per the context of the Bank?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kiran asked almost 3 years ago

Hi Friends, I am CA Intermediate | CA IPCC student. I am having doubt about accounting. May I know, What are the four classifications of Bad and Doubtful Debts as per the context of the Bank?

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7 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended in good.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended in good. Substandard Asset: These accounts are good as per the security extended is good but the loans repayment is not up to the mark. Doubtful Asset: These accounts have both the security as well the repayment stipulation in irregular method. Bad Asset: These accounts are where the repayment is not forthcoming and the security extended becomes bad.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended in good. Substandard Asset: These accounts are good as per the security extended is good but the loans repayment is not up to the mark.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered almost 3 years ago

> The four classifications of Bad and Doubtful Debts as per the context > of the Bank --Assets in Banks are Loans and Advances given to borrowers. These Assets are divided into 4 categories. they are 1. Standard Assets:These accounts are good and the borrower is repaying the loan as per stipulation and also the security extended in good. 2. Sub_Standard Asset:These accounts are good as per the security extended is good but the loans repayment is not upto the mark. 3. Doubtful Asset:These accounts have both the security as well the repayment stipulation in irregular method. 4. Bad Asset:These accounts are where the repayment is not forthcoming and the security extended is also become bad

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Open uri20170510 32134 1c996lj?1494421732 Anil answered almost 3 years ago

Assets in Banks are Loans and Advances given to borrowers. These Assets are divided into 4 categories. they are 1. Standard Assets:These accounts are good and the borrower is repaying the loan as per stipulation and also the security extended in good. 2. Sub_Standard Asset:These accounts are good as per the security extended is good but the loans repayment is not upto the mark. 3. Doubtful Asset:These accounts have both the security as well the repayment stipulation in irregular method. 4. Bad Asset:These accounts are where the repayment is not forthcoming and the security extended is also become bad

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended in good. Substandard Asset: These accounts are good as per the security extended is good but the loans repayment is not up to the mark. Doubtful Asset: These accounts have both the security as well the repayment stipulation in irregular method.

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered almost 3 years ago

Dear Friend, as far as your query is concerned that What are the four classifications of Bad and Doubtful Debts as per the context of the Bank? Let me informed that Assets in Banks are Loans and Advances given to borrowers. These Assets are divided into 4 categories. They are 1. Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended in good. 2. Substandard Asset: These accounts are good as per the security extended is good but the loans repayment is not up to the mark. 3. Doubtful Asset: These accounts have both the security as well the repayment stipulation in irregular method. 4. Bad Asset: These accounts are where the repayment is not forthcoming and the security extended becomes bad. Hope answer was helpful to you Regards, Arjun Pratap Singh

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