Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 3 Chapter 12 – Class 11 Unimax
The following information is extracted from the Trial Balance of M/s. Nisha Trader on 31st Dec. 2019:
| ₹ | |
| Sundry debtors | 80,500 |
| Provision for Bad Debts | 5,000 |
| Bad debts | 1,000 |
| Additional information; | |
| Bad debts | 500 |
Provision for Bad debts is to be maintained at 2% on debtors.
Prepare bad debts account, provision for Bad debts account, and profit and loss account.
| Dr | Profit & Loss A/c |
Cr | |
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| By Provision for doubtful debts A/c | 1,900 | ||
| Dr | Bad debts A/c | Cr | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 2019 | 2019 | ||||||
| Dec.31 | To Balance b/d | 1,000 | Dec.31 | By provision for doubtful debts A/c | 1,500 | ||
| Dec.31 | To Sundry Debtors A/c | 500 | |||||
| 1,500 | 1,500 | ||||||
| Dr | Provision for doubtful debts A/c | Cr | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 2019 | 2019 | ||||||
| Dec.31 | To Bad debts A/c | 1,500 | Jan.1 | By Balance b/d | 5,000 | ||
| Dec.31 | To P&L A/c | 1,900 | |||||
| Dec.31 | To Balance c/d | 1,600 | |||||
| 5,000 | 5,000 | ||||||
| 2020 | |||||||
| Jan.1 | By Balance b/d | 1,600 | |||||
| Net amount chargeable to P & L a/c | |
| Old provision | 5,000 |
| Less: Bad debts | 1,000 |
| Less: further bad debts | 500 |
| 3,500 | |
| Less: new provision | 1,600 |
| 1,900(Cr) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 3 Chapter 12 – Class 11 Unimax", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 12 - Provision and Reserves - Unimax.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 3 Chapter 12 – Class 11 Unimax" instantly.
