Extract of a Trial Balance as at March 31, 2017 is as follows: Sundry Debtors – ₹ 1,02,000 Bad Debts – ₹ 1,400 Provision for Doubtful debts – ₹ 3,400
Extract of a Trial Balance as at March 31, 2017 is as follows:
Sundry Debtors – ₹ 1,02,000
Bad Debts – ₹ 1,400
Provision for Doubtful debts – ₹ 3,400
Additional Information:
A debtor of ₹ 2,000 could not be recovered. It is decided to maintain Provision for Doubtdul Debtors @ 5% on Debtors and Provision for Discount at @ 2%.
How these adjustments will be shown in Financial Statements?
[Ans. Net amount shown on Dr. side of P & L A/c for Bad debts & Provision for Doubtful Debts ₹ 5,000, and for Provision for Discount ₹ 1,900. Balance Sheet ₹ 93,100.]
Anurag Pathak Answered question
