Question No 25 Chapter No 18

25.The balances in the provision for bad debts and provision for discount on debtors stood at Rs 12,400 and Rs 7,500 respectively on 1st April 2017. on 31st March 2018, the debtors stood at Rs 1,60,000. A bill discounted with the bank for Rs 8,000 was dishonoured and entry for this is still to be made
During 2017-18 bad debts written off were Rs 8,600 and discounts allowed were RS 6,900. the firm maintains a provision for bad debts at 5% and a provision for a discount at 2% of the debtors.
Show both these accounts and also give necessary journals entries

## The solution of Question No 25 Chapter No 18:-

 Date Particulars L.F. Debit Credit Sundry Debtors A/c Dr. 8,000 To Bank A/c 8,000 (Being bill discounted with bank dishonoured.) Provision for bad debts A/c Dr. 8,600 To Bad debts A/c 8,600 (Being bad debts written off charged from the provision account.) Provision for discount on debtors A/c Dr. 6,900 To discount A/c 6,900 (Being discount allowed charged from Provision.) Profit & loss A/c Dr. 7,192 To Provision for bad debts A/c 4,600 To Provision for discount on debtors A/c 2,592 (Being required amount charged from the profit & loss account.)

 Provision for bad debts A/c Particular Amount Particular Amount To Bad debts A/c 8,600 By Balance c/d 12,400 To balance c/d 2,800 To Profit & loss A/c 4,600 17,000 17,000

 Provision for discount on debtors A/c Particular Amount Particular Amount To Discount A/c 6,900 By Balance b/d 7,500 To balance c/d 3,192 To Profit & loss A/c 2,5,92 10,092 10,092

Final Accounts: Definition and Explanation

Profit and Loss Account: Meaning, Format & Examples

Balance Sheet: Meaning, Format & Examples

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## 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)