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Question No 24 Chapter No 18
Bad bets and Provision
24.The following items are found in the trial balances of Parkash Singh on 31st March 2019:
| Dr. Rs | Cr. Rs | |
| Debtors | 40,000 | - |
| Bad debts | 4,000 | - |
| Provision for bad debts (1.4.2018) | - | 3,000 |
Adjustment:
Provision for bad debts @5% and provision for discount @2% on debtors is to be maintained.
Show how these items will appear in the financial statement of 2018-19
Profit & Loss Account for the year 31st March 2019
| Particular |
Amount | Particular |
Amount | ||
|---|---|---|---|---|---|
| To Bad debts A/c | 4,000 | ||||
| Add: New provision for bad debts | 2,000 | ||||
| Less: old provision for bad debts | 3,000 | 3,000 | |||
| To new provision for discount on debtors (40,000-2,000)X 2% |
760 | ||||
Balance sheet for the year 31st March 2019
| Particular |
Amount | Particular |
Amount | ||
|---|---|---|---|---|---|
| Debtors | 40,000 | ||||
| Less: new provision | 2,000 | ||||
| Less: provision for discount | 760 | 37,240 | |||
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 - Theory Base of Accounting
Chapter No. 3 - Origin of Transactions
Chapter No. 4 - Vouchers and transactions
Chapter No. 6 - Accounting for Goods and Services Tax(GST)
Chapter No. 9 - Other Subsidiary Books
Chapter No. 10 - Journal Proper
Chapter No. 11 - Trial Balance
Chapter No. 12 - Bank Reconciliation Statement
Chapter No. 14 - Provisions and Reserves
Chapter No. 15 - Bills of Exchange
Chapter No. 16 - Rectification of Errors
Chapter No. 17 - Financial Statements - (Without Adjustments)
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.
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