Question No 06 Chapter No 14

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%) 3,750 31/03/18 By Profit/Loss A/c 800 2,800 2,800

 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.)

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)