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
- 3291 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
which Electrical items is Exciseible
Accounting related interview questions on ibm
while doing work in dolphin software when credit note is given by supplier to purchaser then purchaser is debited supplier account so on credit side which account is coming which account should be credited
What is Compliance?
WHAT IS DIFFERED INCOME TAX AND WHERE IT SHOWS IN BALANCE SHEET?
What is the accounting treatment for finance lease in lessee's viewpoint?
what is absorbtion coasting?
how to prepare HSD statements in tally
I have been interview in next week my posting is accounts officer i have be manage with AP,AR,BRS and GL what Books i have read.
Expand-------MTRS
cany anyone explaing what are the functions of an Account Officer/Manager?
If income and expense both are equal then what it depicts
how MIS statements used in accounts receivables n payables? n what is the advantage of this reports?
Should I have perfect credit score, that is, above 800 credit score?
What Are The Characteristics Of Modern Accounting?
