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Question No 19 Chapter No 16 – Unimax Class 11
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From the following, pass necessary journal entries and show the presentation of provision for discount on debtors in final accounts:
Extracts of Trial Balance as at 31.3.2020
| Particulars | Debit | Credit | |
| Debtors | 3,00,000 | ||
| Bad debts | 13,000 | ||
| Provision for doubtful debts | 30,000 | ||
Adjustments:
(1) write off further bad debts ₹ 10,000.
(2) Provision for doubtful debts is to be kept at 5% of debtors.
(3) Provision for discount on debtors is to be maintained
The solution of Question No 19 Chapter No 16 – UNIMAX Class 11
Journal | |||||||
| Date | Particulars | Debit | Credit | ||||
| 31.3.2020 | Bad debts A/c | Dr. | 10,000 | ||||
| To Debtors A/c | 10,000 | ||||||
| (Being further bad debts written off) | |||||||
| 31.3.2020 | Profit & Loss A/c | Dr. | 14,500 | ||||
| To Provision for doubtful debts A/c | |||||||
| (Being the provision made the doubtful debts @ 5% on debtors after further bad debts) | |||||||
| 31.3.2020 | Profit & Loss A/c | Dr. | 11,020 | ||||
| To Provision for discount on debtors A/c | 11,020 | ||||||
| (Being the provision made for discount on debtors @ 4% on goods debtors i.e. after further b/d and after provision for doubtful debts) | |||||||
| Profit & Loss A/c for the year ended 31st March,2020 | |||||
| Particulars | Amount | Particulars | Amount | ||
| To Bad debts Add: Further b/d | 13,000 10,000 | ||||
| 23,000 | |||||
| Add: New provision | 14,500 | ||||
| 37,500 | |||||
| Less: old provision | 30,000 | 7,500 | |||
| To Provision for discount on debts A/c | 11,020 | ||||
| Balance Sheet As at 31st March, 2020 | |||||
| Liabilities | Amount | Assets | Amount | ||
| Debtors | 3,00,000 | ||||
| Further b/d | 10,000 | ||||
| 2,90,000 | |||||
| Less: New provision | 14,500 | ||||
| 2,75,500 | |||||
| Less: Dis. on debtors | 11,020 | 2,64,480 | |||
Working Note:
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| (1) Calculate of provision for doubtful debts | |
| Total | 3,00,000 |
| Less: debtors | 10,000 |
| 2,90,000 | |
| Provision for doubtful debts | 14,500 |
| (2,90,000 x 5/100) | |
(2)Calculate of provision on debtors | |
| Total Debtors | 3,00,000 |
| Less: Further b/d | 10,000 |
| 2,90,000 | |
| Less: Provision | 14,500 |
| 2,75,500 | |
| Provision for discount on debtors | 11,020 |
| (2,75,500*4/100) |
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Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
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Balance Sheet: Meaning, Format & Examples
Also, Check out the solved question of all Chapters: –
Advanced Accountancy – Unimax Class 11 – 2021 – Solution.
Part-I
- Chapter No. 1 – Introduction of Accounting
- Chapter No. 2 – Theory Base of Accounting
- Chapter No. 3 – Vouchers and Transactions
- Chapter No. 4 – Journal
- Chapter No. 5 – Goods and Services Tax (GST): An Introduction
- Chapter No. 6 – Ledger
- Chapter No. 7 – Special Purpose Book – Cash Book
- Chapter No. 8 – Other Subsidiary Books
- Chapter No. 9 – Trial Balance
- Chapter No. 10 – Rectification of Errors
- Chapter No. 11 – Depreciation
- Chapter No. 12 – Provision and Reserves
- Chapter No. 13 – Bank Reconciliation Statement
- Chapter No. 14 – Bills of Exchange
Students may choose only one part from the Part II and Part III
Part-II
- Chapter No. 15 – Financial Statements (Without Adjustments)
- Chapter No. 16 – Financial Statements (With Adjustments)
- Chapter No. 17 – Accounts from Incomplete Records – Single Entry System
Part-III
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- Chapter No. 18 – Introduction to Computers and Accounting information System
- Chapter No. 19 – Computerised Accounting
- Chapter No. 20 – Accounting Software: Tally
- Chapter No. 21 – Data Base System
- Chapter No. 22 – Concept of Entity and Relationship
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
Chapter No. 4 – Vouchers and transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
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Chapter No. 9 – Other Subsidiary Books
Chapter No. 10 – Journal Proper
Chapter No. 11 – Trial Balance
Chapter No. 12 – Bank Reconciliation Statement
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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)
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