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 Debtors40,000
Bad debts3,500

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
DateParticulars
L.F.DebitCredit
 Profit & Loss A/cDr. 2,000 
 To Provision for Bad debts A/c   2,000
 (Being new provision on debts created @5%.)   
     

 

Profit & loss Account
Particular
AmountParticular
Amount
To Bad debts A/c3,500    
Add: New provision for bad debts2,0005,500   
    

 

Balance Sheet
Labilities
AmountAssets
Amount
   Debtors. A/c40,000 
   Less: further bad debts2,00028,000
      
    

 

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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