Question No 22 Chapter No 18 - USHA Publication 11 Class

Question No 22 Chapter No 18

Table of Contents

The solution of Question No 22 Chapter No 18:-

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Bad bets and Provision

22. On 1st April 2015 the provision for bad debts account showed a credit balance of Rs 3,600 During the year the bad debts amounted to Rs 2,800. the debtors on 31st March 2016 amounted to Rs 96,000 and a provision of 5% for doubtful debts was maintained. The bad debts during the year 2016-17 amount to Rs 5,400. on 31st March 2017, the debtors amounted to Rs 1,00,000and a5% provision for bad debts was required to keep. In 2017-18 the debts amounted to Rs 1,200 and the debtors at the end of the year amounted to Rs 40,000 on which a provision of 5% for bad debts was to be maintained.
Show the provision for bad debts account and also show how this item will appearing the profit and loss account and balance sheet in every three years.

The solution of Question No 22 Chapter No 18:-

	Provision for bad debts A/c
Date	Particular	Amount	Date	Particular	Amount
2016			2015
Mar. 31	To bad debts A/c	2,800	Apr. 1	By Balance b/d	3,600
Mar. 31	To Balance c/d	4,800	2016
			Mar. 31	By P & L A/c	4,000
		7,600			7,600
2017			2016
Mar. 31	To bad debts A/c	5,400	Apr. 1	By Balance b/d	4,800
Mar. 31	To Balance c/d	5,000	2017
			Mar. 31	By P & L A/c	5,600
		10,400			10,400
2018			2017
Mar. 31	To bad debts A/c	1,200	Apr. 1	By Balance b/d	5,000
Mar. 31	To Balance c/d	1,800
Mar. 31	By P & L A/c (5% of 40,000)	2,000
		5,000			5,000

Profit & loss A/c
Particulars		Amount	Particulars	Amount
2015-16
To Bad debts written off A/c	2,800
Add: New provision for bad debts	4,800
Less: Old provision for bad debts	3,600	4,000

2016-17
To Bad debts old provision A/c	5,400
Add: New provision for bad debts	5,000
Less: Old provision for bad debts	4,800	5,600

2017-18
To Bad debts old provision A/c	5,000
less: bad debts written off	1,200
Less: New provision for bad debts	2,000	1,800
		–		–

Profit & loss A/c
Labilities	Amount	Assets		Amount
		2016
		Debtors A/c	96,000
		Less: Provision for bad debts @5%	4,800	91,200

		2017
		Debtors A/c	1,00,000
		Less: Provision for bad debts @5%	5,000	95,000

		2018
		Debtors A/c	40,000
		Less: Provision for bad debts @5%	2,000	38,000



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