Question No 03 Chapter No 14 - USHA Publication 11 Class

Question No 03 Chapter No 14

Table of Contents

The solution of Question No 03 Chapter No 14: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Provision for Doubtful debit and for discount on Debtors

3. On 1stApril 2016 provision for doubtful debts account showed a credit balance of Rs 4,000. bad debts during the years 2016-17, 2017-18 and 2018-19 were Rs 2,600, Rs 1,300 and Rs 600 respectively. The debtors on 31st March 2017, 2018 and 2019 were Rs 40,000 , Rs 50,000 and Rs 18,000 respectively. Provision for doubtful debts is required to be maintained at 5% every years
Prepare Provision for Doubtful Account for three year period.

The solution of Question No 03 Chapter No 14: –

Dr.	Provision for Doubtful Debts A/c						Cr.
Dat	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/17	To Bad debts A/c		2,600	1/04/16	By Balance b/d		4,000
31/03/17	By Balance C/d (40,000 x5%)		2,000	31/03/17	By Profit/Loss A/c		600
			4,600				4,600
31/03/18	To Bad debts A/c		130000	01/04/17	By Balance b/d		2,000
31/03/18	By Balance C/d (50,000 x5%)		2,500	31/03/18	By Profit/Loss A/c		1,800
			3,800				3,800
31/03/19	To Bad debts A/c		600	01/04/18	By Balance b/d		2,500
31/03/19	To Profit/Loss A/c		1,000
31/03/19	By Balance C/d (18,000 x5%)		900
			2,500				2,500