Question No 06 Chapter No 14 - USHA Publication 11 Class

Question No 06 Chapter No 14

Table of Contents

The solution of Question No 06 Chapter No 14: –

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

Provision for Doubtful debit and for a discount on Debtors

6. The following figure is given

	Rs
Provision for doubtful debts on 1st April 2017	2,000
Provision for discount on debtors on 1st April 2017	950
Bad debts are written off during 2017-18	1,300
Discount allowed during 2017-18	1,090
Debtors as on 31st March 2018	30,000

The provision for debts is to be maintained at 5% of the debtors and the provision for discount on debts at 2%. Given journal entries and ledger accounts for the above.

The solution of Question No 06 Chapter No 14: –

Dr.	Provision for Doubtful Debts A/c						Cr.
Dat	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/18	To Bad debts A/c		1,300	01/04/17	By Balance b/d		2,000
31/03/18	By Balance C/d (30,000 x5%)		1500	31/03/18	By Profit/Loss A/c		800
			2800				2,800

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Dr.	Provision for Doubtful Debts A/c						Cr.
Dat	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/18	To Bad debts A/c		1,090	01/04/17	By Balance b/d		950
31/03/18	By Balance C/d (28,500 x2%)		570	31/03/18	By Profit/Loss A/c		710
			1,660				1,660

Journal
Date	Particulars		L.F.	Debit	Credit
2018
Mar. 31	Provision for doubtful debts A/c	Dr.		1,300
	To bad debts A/c				1,300
	(Being bad debts of the year charged to provision for doubtful debts account.)

Mar. 31	Provision for discount on debtors A/c	Dr.		1,090
	To Discount allowed A/c				1,090
	(Being discount allowed during the year charged to provision for a discount account.)

Mar. 31	Profit/Loss A/c	Dr.		1,510
	To Provision for doubtful debts A/c				800
	To Provision for discount on debtors A/c				710
	(Being the amount debited to profit and loss account for maintaining required balance in the provision account.)