Question No 25 Chapter No 18

Question No 25 Chapter No 18

Bad bets and Provision

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:-

 

DateParticulars
L.F.
Debit Credit
 Sundry Debtors A/cDr. 8,000 
 To Bank A/c   8,000
 (Being bill discounted with bank dishonoured.)    
      
 Provision for bad debts A/cDr. 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/cDr. 6,900 
 To discount A/c   6,900
 (Being discount allowed charged from Provision.)    
      
 Profit & loss A/cDr. 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
AmountParticular
Amount
To Bad debts A/c 8,600By Balance c/d 12,400
To balance c/d 2,800To Profit & loss A/c 4,600
      
  17,000  17,000

 

Provision for discount on debtors A/c
Particular
AmountParticular
Amount
To Discount A/c 6,900By Balance b/d 7,500
To balance c/d 3,192To 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

Thanks, Please Like and share with your friends  

Comment if you have any question.

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)

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close