Question 1

Question 1 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 1 Chapter 12 – Class 11 Unimax
1. The following are the extracts of the trial balance as on 31st March 2020.

Sundry debtors
42,000

Addition information-(1) Book debts proved bad but not recorded amounted to ₹ 2,000.
(2) Provision for doubtful debts is to be created at 10% on sundry debtors.
Pass Journal entries and show them in the profit and loss account and balance sheet of the company.
The solution of Question 1 Chapter 12 – Class 11 Unimax
Journal

Date 
Particulars
 
L.F.

Question 2

Question 2 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 2 Chapter 12 – Class 11 Unimax
An extract of the trial balance from the books of Tahiliani and sons enterprise on December 31, 2019, is given below:

Name of the account
Dr. Amount
Cr. Amount

Sundry debtors
50,000

Bad debts
6,000

Provision for doubtful debts
 
4,000

Addition information-*Bad debts proved bad but not recorded amounted to ₹ 2,000.
*Provision is to be maintained at 8% of debtors.
Give necessary accounting entries for writing off the bad debts and crediting

Question 3

Question 3 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 3 Chapter 12 – Class 11 Unimax
The following information is extracted from the Trial Balance of M/s. Nisha Trader on 31st Dec. 2019:

₹

Sundry debtors
80,500

Provision for Bad Debts
5,000

Bad debts
1,000

Additional information;

Bad debts
500

Provision for Bad debts is to be maintained at 2% on debtors.
Prepare bad debts account, provision for Bad debts account, and profit and loss account.
The solution of Question 3 Chapter 12 – Class 11 Unimax

Dr
Profit

Question 4

Question 4 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 4 Chapter 12 – Class 11 Unimax
Prepare the bad debts account, provision for bad debts account, profit and loss account and balance sheet from the following information as on December 31, 2019:

₹

Debtors
80,000

Bad debts
2,000

Provision for bad debts
5,00

Adjustments:

Bad debts ₹ 500, provision on debtors @ 3%.

The solution of Question 4 Chapter 12 – Class 11 Unimax:

Dr
Dr. Bad debts A/c Cr.
Cr

Particulars
Amount
Particulars
Amount

Question 5

Question 5 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 5 Chapter 12 – Class 11 Unimax
5. On 31st December 2018, Sundry debts were ₹ 2,50,000, on which a provision for doubtful debts was to be made at 2%During 2019, there were bad debts amounted to ₹ 1,600. On 31st December 2019, sundry debtors stood at ₹ 3,00,000, on which a provision for doubtful debts at 5% was to be maintained.Prepare necessary ledger accounts and show how these items would appear in the profit & Loss account and balance sheet as at 31st December 2018 & 31st Dec

Question 6

Question 6 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 6 Chapter 12 – Class 11 Unimax
6. Following balance were extracted from the Trial Balance of M/s Duggal Traders as on 31.3.2019

Name of accounts
L.F.
Dr.
Cr.

Sundry debtors
 
5,00,000

Discount allowed
 
17,000

Bad debts
 
18,500

Provision for bad debts

30,000

Provision for discount on debtors

24,000

Adjustment:1. Further bad debts were ₹ 10,0002. Provision for bad debts to be created @ 10% 3. Provision for

Question 7

Question 7 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 7 Chapter 12 – Class 11 Unimax
7. It is estimated by a company that it will require an additional sum of ₹ 3,00,000 after four years to replace its existing plant. It created a specific reserve for the replacement of its plant and appropriated ₹ 75,000 to this reserve each year on 31st March. New plant is purchased for ₹ 3,00,000 after four years. Give necessary journal entries and ledger accounts.
The solution of Question 7 Chapter 12 – Class 11 Unimax:

Date 
Particulars
 
L.F

Question 8

Question 8 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 8 Chapter 12 – Class 11 Unimax
A company decided to transfer ₹ 400 every year to repair and renewals reserve account maintained for a machine recently purchased. In the 1st 4 years, annual repairs were ₹ 50, ₹ 90, ₹ 150 and ₹ 170 respectively. Prepare repairs and renewals reserve account for these 4 years.
The solution of Question 8 Chapter 12 – Class 11 Unimax:

Dr.
Book of company repairs and renewal reserve A/c
Cr.

Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount

Question 9

Question 9 Chapter 12 – Class 11 Unimax

Sarbjit Singh · Accepted Answer

Question 9 Chapter 12 – Class 11 Unimax
9. For the year 2019 opening balance in provision for taxation is ₹ 6,00,000. Net profit for the year amounted to ₹ 18,00,000 and rate if income tax payable is 40%. Prepare provision for taxation account and income tax payable A/c.
The solution of Question 9 Chapter 12 – Class 11 Unimax:

Dr.
Provision for taxation A/c
Cr.

Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount

2019

Dec.31
To

Date	Particulars		Debit	Credit
2020
Mar.31	Bad debts A/c	Dr.	2,000
	To Sundry debtors A/c			2,000
	(Being bad debts written off)

Mar.31	Profit & Loss A/c	Dr.	2,000
	To Bad debts A/c			2,000
	(Being bad debts transferred to P & L a/c)

Mar.31	Profit & Loss A/c	Dr.	4,000
	To Provision for doubtful debts A/c			4,000
	(Being creating provision for doubtful debts)

Particulars	Amount	Particulars	Amount
To Bad debts A/c	2,000
To Provision for doubtful A/c	4,000

Particulars		Amount
Sundry Debtors	42,000
Less: Bad debts	2,000
	40,000
Less: Provision for Doubtful Debts	4,000	36,000

Unimax Accountancy Class 11 - 2023 Solutions Chapter 12 - Provision and Reserves - Unimax

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