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Question No 22 Chapter No 18
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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:-
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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 | |||
– | – |
Final Accounts: Meaning, Definition and Explanation
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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: –
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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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