The Bad Debts figure in the trial balance is 170.
The following info is to be taken into account: A
provision for bad debts of 5% of debtors is to be created

Answers were Sorted based on User's Feedback



The Bad Debts figure in the trial balance is 170. The following info is to be taken into account: ..

Answer / srinivas

you will have to deduct 170 from total debtors and create a
new provision for bad debts as 5% mentioned above after such
deduction.

Is This Answer Correct ?    1 Yes 1 No

The Bad Debts figure in the trial balance is 170. The following info is to be taken into account: ..

Answer / dr. sarveshwar pande

If any additional Bad debts is to be written off, then this would be deducted from the debtors figure. Next the provision of 5% would be computed on the debtors figure which would now give the adjusted figure for debtors.
Eg. Bad debts in Trial balance is Rs100. Debtors in Trial balance were Rs5,200. Additional details: 1) Write off additional bad debts Rs200. 2) Provide a provision for Doubtful debts @ 5%.

Step 1: Debtors - New Bad debts only  (Rs5,200 - Rs200 = Rs5,000)

Step 2: Provide 5% on New Debtors (5% of Rs5,000 = Rs250)

Step 3: Bad debts in P& L would be (Rs100+Rs200 = Rs300)

Step 4: Doubtful debts in P& L would be Rs250

Step 5: Debtors in Balance sheet would be:( Rs5,000-Rs250 = Rs4,750)

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Accounting AllOther Interview Questions

why balance sheet should always tally?

9 Answers  


Dear sir, I have complete B.com in march 2007, for past 4year i am doing some marketing jobs in insurance sector, now i need to change my job in accounting sector, i have heard that by doing SAP Fico there will be better opurtunity in corporate companies.

0 Answers  


what is audit mean? what is vouching? how to finalize the account? what is the meaning of + cast < as per last year auditor’s a/c ^ as per ledger JV journal voucher PV payment voucher AJV authorised journal voucher APV authorised journal voucher RV receiving voucher PCV petty cash voucher CPV cash payment voucher DN debit note DO delivery order PO purchases order CN credit note PS policy schedule RPS renewal policy schedule B bill Cx cross check nCx cannot cross check CB cash bill L list/letter SRF stock requisition form R report OR office report INV invoice DS deposit slip AB assessment bill Re receipt ECF entertainment claim form ATRF air ticket requisition form

0 Answers  


How to adjust payment transfer amount one party to another party in Tally?

1 Answers  


what is reorder quantity and what is reorder Lavale?

1 Answers  






what is debtors?

9 Answers  


EXPAND___________IRDA

1 Answers  


i am brijesh i geting annul packge 600000 can u help me how much i give tax to government

4 Answers  


What is inter-corporate deposits? and where it is shown in balance sheet?

0 Answers  


we can add the no. of increase in shares due to exercise of options,convertible debentures,warrants etc.Why diluted eps is calculated separately?

0 Answers   Capital IQ,


Expand ------HH

2 Answers   Wipro,


in first puc accountancy book by B.S.Raman there is a lots f definitions for everything so how should i have to study

3 Answers  


Categories