Question No 07 Chapter No 14 – USHA Publication 11 Class

Question No 07 Chapter No 14

Question No 07 Chapter No 14

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


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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

 

 

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