Question No 24 Chapter No 18
Bad bets and Provision
24.The following items are found in the trial balances of Parkash Singh on 31st March 2019:
| Dr. Rs | Cr. Rs | |
| Debtors | 40,000 | – |
| Bad debts | 4,000 | – |
| Provision for bad debts (1.4.2018) | – | 3,000 |
Adjustment:
Provision for bad debts @5% and provision for discount @2% on debtors is to be maintained.
Show how these items will appear in the financial statement of 2018-19
The solution of Question No 24 Chapter No 18:-
| Profit & Loss Account for the year 31st March 2019 |
|||||
| Particular |
Amount | Particular |
Amount | ||
| To Bad debts A/c | 4,000 | ||||
| Add: New provision for bad debts | 2,000 | ||||
| Less: old provision for bad debts | 3,000 | 3,000 | |||
| To new provision for discount on debtors (40,000-2,000)X 2% |
760 | ||||
| Balance sheet for the year 31st March 2019 |
|||||
| Particular |
Amount | Particular |
Amount | ||
| Debtors | 40,000 | ||||
| Less: new provision | 2,000 | ||||
| Less: provision for discount | 760 | 37,240 | |||
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: –
Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Origin of Transactions
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Chapter No. 4 – Vouchers and transactions
Chapter No. 6 – Accounting for Goods and Services Tax(GST)
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)