Question 18 Chapter No 16 – Class 11 Unimax

Question 18 Chapter No 16 – Class 11 Unimax

From the following, pass journal entries and show the presentation of provision for doubtful in final accounts:

Extracts of Trial Balance as at 31.3.2020
Particulars	Debit	Credit
Sundry debtors	2,00,000
Bad debts	21,000
Provision for doubtful debts		40,000

Adjustments: Create a provision for doubtful debts @ 5% on sundry debtors.

The solution of Question 18 Chapter No 16 – Class 11 Unimax

Journal

Date	Particulars		L.F.	Debit		Credit
31.3.2020	Provision for doubtful debts A/c	Dr.		21,000
	To Bad debts A/c					21,000
	(Being bad debts written off)
31.3.2020	Provision for doubtful debts A/c	Dr.		19,000
	To New Provision for doubtful debts A/c					10,000
	To Profit & Loss A/c					9,000
	(Being excess provision written back)

 

Profit & Loss A/c                    for the year ended 31st March,2020
Particulars	Amount		Particulars		Amount
			By Old Provision for doubtful debts A/c	40,000
			Less: bad debts	21,000
				19,000
			Less: New Provision	10,000	9,000

Balance Sheet          As at 31st March, 2020
Liabilities	Amount		Assets		Amount
			Sundry debtors	2,00,000
			Less: New Provision	10,000	1,90,000