Question 5 Chapter 12 – Class 11 Unimax

Question 5 Chapter 12 – Class 11 Unimax

5. On 31st December 2018, Sundry debts were ₹ 2,50,000, on which a provision for doubtful debts was to be made at 2%
During 2019, there were bad debts amounted to ₹ 1,600. On 31st December 2019, sundry debtors stood at ₹ 3,00,000, on which a provision for doubtful debts at 5% was to be maintained.
Prepare necessary ledger accounts and show how these items would appear in the profit & Loss account and balance sheet as at 31st December 2018 & 31st December 2019.

The solution of Question 5 Chapter 12 – Class 11 Unimax

Provision for bad debts A/c
Particulars	Amount	Particulars	Amount
2018
To Balance c/d	5,000	By profit & Loss A/c	5,000
	5,000		5,000
2019
To Bad debts	1,600	By balance b/d	5,000
To Balance c/d	15,000	By profit & Loss A/c	11,600
	16,600		16,600

Bad debts A/c			Cr
Particulars	Amount	Particulars		Amount
2019
To Debtors A/c	1,600	By provision for bad debts A/c		1,600
	1,600			1,600
Profit & loss A/c as on 31/12/2018			Cr
Particulars	Amount	Particulars		Amount
By provision for bad debts A/c	5,000

Profit & loss A/c as on 31/12/2019

Liabilities		Amount	Assets	Amount
To bad debts	1,600
Add: new provision for bad debts	15,000
	16,600
Less: old provision for bad debts	5,000	11,600

Balance sheet as on 31/12/2018

Liabilities	Amount	Assets		Amount
		Sundry Debtors	2,50,000
		Less: new provision for bad debts	5,000	2,45,000

Balance sheet as on 31/12/2019

Liabilities	Amount	Assets		Amount
		Sundry Debtors	3,00,000
		Less: new provision for bad debts	15,000	2,85,000