sir, why when a customer goes bankrupt and we made previously allowance, we debitting Expense and crediting TR because allowance made is adjusted at the y/e. why cant we just write write off the allowance too. Because it becomes like empty slot of information in accounts.
You can, but (a) you are not asked for t-accounts; (b) it makes it all more complicated; and (c) there is no empty slot – whatever happens during the year the allowance at the end of the year is that that is required at the end of the year.