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Question No 21 Chapter No 18
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Bad bets and Provision
21.The following balances have been extracted from the trial balances of Reeta Bakshi as on31st March 2018
| Ledger Account | (Dr. Rs) | (Cr. Rs) |
| Sundry Debtors | 40,000 | – |
| Bad debts | 3,500 | – |
Adjustments
Creates provision for doubtful debts @5% on sundry debtors
Give the adjusting entry and show how it will appear in final accounts.
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The solution of Question No 21 Chapter No 18:-
| Adjustment entries | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| Mar.31 | Profit & Loss A/c | Dr. | 2,000 | ||
| To Provision for Bad debts A/c | 2,000 | ||||
| (Being new provision on debts created @5%.) | |||||
| Profit & loss Account | |||||
| Particular | Amount | Particular | Amount | ||
| To Bad debts A/c | 3,500 | ||||
| Add: New provision for bad debts | 2,000 | 5,500 | |||
| – | – | ||||
| Balance Sheet | |||||
| Labilities | Amount | Assets | Amount | ||
| Debtors. A/c | 40,000 | ||||
| Less: further bad debts | 2,000 | 38,000 | |||
| – | – | ||||
Final Accounts: Meaning, Definition and Explanation
Profit and Loss Account: Meaning, Format & Examples
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Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of all Chapters: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
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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)