Question No 21 Chapter No 18 – USHA Publication 11 Class

Question No 21 Chapter No 18

Question No 21 Chapter No 18

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.

 

The solution of Question No 21 Chapter No 18:-

Adjustment entries
Date Particulars
L.F. Debit Credit
  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 28,000
           
       

 

Final Accounts: Definition and Explanation

 

Profit and Loss Account: Meaning, Format & Examples

 

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

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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