Interested to Buy Any Domain ? << Click Here >> for more details...
the following information wads extracted ffrom the book of a business man :debtors as on 31/12/1987 $25000 bad debts during 1987 $1000.provision for doubtful debts is to be maintained at 5%. a provision for discount is also at 2%. you are required to calculate the amount set aside in respect of provision for doubtful debts and provision for discounts on debtors respectively
- 1 Answers
- 2690 Views
- I also Faced
- E-Mail Answers
Debtors for the year 1987 is - 25000
Bad debts - 1000
Doubtful debts - 5% ie; 25000 -(25000*5/100 =1250)= 23750
Pro. for Discount on Debtors 2% - (22750*2/100) = 22295
therefore
In balance sheet (Assest Side)
Debtors - 25000
Less: bad-debts - 1000
= 24000
less: pro.for doubtful debts 1250
= 22750
Less: Pro. for Discount on debts - 455
22295
In P & L Account(debit Side)
Bad debts - 1000
Add: Pro for Bad debts - 1250
Add: Pro for Discount on Debts- 455
= 2705
| Is This Answer Correct ? | 0 Yes | 1 No |
Describe the proof of cash type of bank reconciliation?
When we received payment from creditors
how to pass the entry of advance paid to employee against salary
can we issue bonus shares at premium? how?
vat paid on purchase is it comes on direct expenses or indirect expenses
how to pass interest on security entries and salary payable entries in tally and how to maintain e-commerce company account please revert me ASAP its needful for me
What is a ledger?
what is the journal entry for cheque dishonour
16 Answers Bank Of America, CTS, Oriental Bank Of Commerce,
Plant and machinery destroyed for 50000
Is there Disqualification of Auditor u/s 139 of Companies Act 2013 if the auditor is indebted towards the company to be appointed as an auditor, if amount exceeds more than Rs.1000 as against the provision related to Companies Act, 1956 ?
Capital Expenditure
2 Answers Chartered Accountant,
Tell me which accounting application you prefer most and why?
Audit 
