Question No 05 Chapter No 14 - USHA Publication 11 Class

Question No 05 Chapter No 14

Table of Contents

The solution of Question No 05 Chapter No 14: –

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

Provision for Doubtful debit and for discount on Debtors

5. The following balance appeared inn the book of Mamta Banerjee on 1st April 2017:

	Rs
Sundry Debtors	85,000
Provision for bad and doubtful debts	1,700
Provision for discount on debtors	1,666

On 31st March, 2018 debtors were Rs 1,25,000. during the year, bad debts amounted to Rs 1,500 and discount allowed Rs 166. you required to create 3% provision for doubtful debts and 2% discount on Debtors.
Prepare the necessary account.

The solution of Question No 05 Chapter No 14: –

Dr.	Provision for Doubtful Debts A/c						Cr.
Dat	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/19	To Bad debts A/c		1,500	01/04/18	By Balance b/d		1,700
31/03/19	By Balance C/d (1,25,000 x3%)		3,750	31/03/19	By Profit/Loss A/c		3,500
			5,250				5,250

Dr.	Provision for Doubtful Debts A/c						Cr.
Dat	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/19	To Bad debts A/c		166	01/04/18	By Balance b/d		1,666
31/03/19	By Balance C/d (1,25,250 x2%)		2,425	31/03/19	By Profit/Loss A/c		925
			2,591				2,591