Impairment of financial assets

When loan is made Dr P&L Cr Allowance 4000 One year later Dr P&L Cr Allowance 200 Stage 2 Dr P&L Cr Allowance with 200,000 less 4,200 Stage 3 Dr Allowance Cr Loan asset 200,000 Bear in mind that an allowance account is what we used to call a provision