Question No 04 Chapter No 14 - USHA Publication 11 Class

Question No 04 Chapter No 14

Table of Contents

The solution of Question No 04 Chapter No 14: –

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

Provision for Doubtful debit and for discount on Debtors

4. On 1st April 2015 credit balance of provision for doubtful debts account was Rs 2,700. During the years 2015-16 bad debts amounted for doubtful debts account was Rs 2,100. on 31st March 2016 debtors were Rs 1,26,000 provision @5% is created for doubtful debts on this amount.
In 2016-17 bad debts amounted to Rs 2,160. on 31st March 2017 debtors were Rs 75,000. provision 5% for doubtful debts is created on this amount. In 2017-18 bad debts amounted to Rs 3,000. on the last day of this year, debtors were Rs 30,000 and a provision of 5% is created for doubtful debts one this amount.
Prepare Provision for Doubtful debts account for three years period.

The solution of Question No 04 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 Bank A/c(repairs)		2,100	1/04/16	By Balance b/d		2,700
31/03/17	By Balance C/d		6,300	31/03/17	By Profit/Loss A/c		5,700
			8,400				8,400
31/03/18	To Bad debts A/c		2,160	01/04/17	By Balance b/d		6,300
31/03/18	To Profit/Loss A/c		390
31/03/18	By Balance C/d		3,750
			6,300				6,300
31/03/19	To Bad debts A/c		3,000	01/04/18	By Balance b/d		3,750
31/03/19	By Balance C/d		1,500	31/03/19	By Profit/Loss A/c		750
			4,500				4,500