Question 1 Chapter 12 – Class 11 Unimax

Question 1 Chapter 12 – Class 11 Unimax

1. The following are the extracts of the trial balance as on 31st March 2020.

Sundry debtors

42,000

Addition information-
(1) Book debts proved bad but not recorded amounted to ₹ 2,000.

(2) Provision for doubtful debts is to be created at 10% on sundry debtors.

Pass Journal entries and show them in the profit and loss account and balance sheet of the company.

The solution of Question 1 Chapter 12 – Class 11 Unimax

Journal

Date	Particulars		L.F.	Debit	Credit
2020
Mar.31	Bad debts A/c	Dr.		2,000
	To Sundry debtors A/c				2,000
	(Being bad debts written off)
Mar.31	Profit & Loss A/c	Dr.		2,000
	To Bad debts A/c				2,000
	(Being bad debts transferred to P & L a/c)
Mar.31	Profit & Loss A/c	Dr.		4,000
	To Provision for doubtful debts A/c				4,000
	(Being creating provision for doubtful debts)

Profit & Loss A/c
For the year ended 31st March 2020

Particulars	Amount	Particulars	Amount
To Bad debts A/c	2,000
To Provision for doubtful A/c	4,000

Balance sheet
as on 31st March 2020 

Particulars	Amount	Particulars		Amount
		Sundry Debtors	42,000
		Less: Bad debts	2,000
			40,000
		Less: Provision for Doubtful Debts	4,000	36,000