Question No 07 Chapter No 14 - USHA Publication 11 Class

Question No 07 Chapter No 14

Table of Contents

The solution of Question No 07 Chapter No 14: –

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

Provision for Doubtful debit and for discount on Debtors

7. In a concern, where the current expenditure on repairs is comparatively low it is anticipated that expenditure in subsequent period will be considerable, you find that repair reserve is created and credited every year for Rs 90,000
If the actual repair amounted to Rs 9,000, Rs 21,000 and Rs 33,000 in three years respectively what would be the revenue charges for three respective years.

The solution of Question No 07 Chapter No 14: –

Dr.	Provision for Doubtful Debts A/c						Cr.
Dat	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
	To Bank A/c(repairs)		9,000	I	By Balance b/d		90,000
	By Balance C/d		81,000
			90,000				90,000
	To Bad debts A/c		21,000	II	By Balance b/d		81,000
					By Profit/Loss A/c		90,000
	By Balance C/d		1,50,000
			1,71,000				1,71,000
	To Bad debts A/c		33,000	III	By Balance b/d		1,50,000
	By Balance C/d		2,07,000		By Profit/Loss A/c		90,000
			2,40,000				2,40,000