Question No 04 Chapter No 14
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 Content covered in this article:
The solution of Question No 04 Chapter No 14: –
|Dr.||Provision for Doubtful Debts A/c||Cr.|
|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|
|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|
|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|
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