Question No 08 Chapter No 14
Provision for Doubtful debit and for discount on Debtors
8. Bharat cotton Mills Ltd. Created a repairs and renewals provision on and from 31st march 2017 by charging Rs 2,000 each year to revenue. During the three years ended on 31st March 2019 the total expenses on repairs and renewals were: 2016-17 Rs 1,360; 2017-18 Rs 1,896 and 2018-19 Rs 2,016 respectively.
You are required to show the ledger count for three years.
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The solution of Question No 08 Chapter No 14: –
|Dr.||Provision for Doubtful Debts A/c||Cr.|
|31/03/17||To Bank A/c(repairs)||1,360||31/03/17||By Balance b/d||2,000|
|31/03/17||By Balance C/d||640|
|31/03/18||To Bad debts A/c||1,896||1/04/17||By Balance b/d||640|
|31/03/18||By Profit/Loss A/c||2,000|
|31/03/18||By Balance C/d||1,50,000|
|31/03/19||To Bad debts A/c||2,016||01/04/18||By Balance b/d||744|
|31/03/19||By Balance C/d||728
||31/03/19||By Profit/Loss A/c||2,000|
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