Question No 22 Chapter No 18 – USHA Publication 11 Class

Question No 22 Chapter No 18

Question No 22 Chapter No 18

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
      10,500       10,500
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: 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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