Interested to Buy Any Domain ? << Click Here >> for more details...
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
- 2 Answers
- 4330 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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 View All Answers
Examples of automatic generated content material of car logbook loans?
where does the closing stock appears in the trial balance?
plz send me the apptitude question papers of wipro
ACCOUNTING STANDARDS ISSUED BY INSTITUE OF CHARTERED ACCOUNTANCY INDIA FOR PREPARING FUND FLOW STATEMENT
what is Derivative Documentation,Derivative Settlements,Derivative confirmation?
why specifically inited states ?
cany anyone explaing what are the functions of an Account Officer/Manager?
What is DRA in bank reconciliation.
What does stand for EPD,MIS? Can anyone tell me briefly n clearly about this?
In order to comply with the matching principle, adjustment entries are made at the preparation of ----------
1.provide a brief write up on why you consider yourself suitable for the post voting your major achievements? 2. Mention your position in the hierarchy and the levels above and below you ?
hi guys, pls refer me how to preppare for Indian Bank exams.
what are the customization u have done in sap mm
Please tell me about service tax, tds, vat & ITR return with A to Z completely detail.
what is dieerence between capital cpapital structure
