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
DateParticular
AmountDateParticular
Amount
2016   2015   
Mar. 31To bad debts A/c 2,800Apr. 1By Balance b/d 3,600
Mar. 31To Balance c/d 4,8002016   
    Mar. 31By P & L A/c 4,000
   7,600   7,600
2017   2016   
Mar. 31To bad debts A/c 5,400Apr. 1By Balance b/d 4,800
Mar. 31To Balance c/d 5,0002017   
    Mar. 31By P & L A/c
 5,600
   10,500   10,500
2018   2017   
Mar. 31To bad debts A/c 1,200Apr. 1By Balance b/d 5,000
Mar. 31To Balance c/d 1,800    
Mar. 31By P & L A/c
(5% of 40,000)
 2,000    
   5,000   5,000

 

Profit & loss A/c
Particulars
AmountParticulars
Amount
2015-16     
To Bad debts written off A/c2,800    
Add: New provision for bad debts4,800    
Less: Old provision for bad debts3,6004,000   
      
2016-17     
To Bad debts old provision A/c5,400    
Add: New provision for bad debts5,000    
Less: Old provision for bad debts4,8005,600   
      
2017-18     
To Bad debts old provision A/c5,000    
less: bad debts written off1,200    
Less: New provision for bad debts2,0001,800   
    

 

Profit & loss A/c
Labilities
AmountAssets
Amount
   2016  
   Debtors A/c96,000 
   Less: Provision for bad debts @5%4,80091,200
      
   2017  
   Debtors A/c1,00,000 
   Less: Provision for bad debts @5%5,00095,000
      
   2018  
   Debtors A/c40,000 
   Less: Provision for bad debts @5%2,00038,000
      
      
      
    

 

 

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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