wiz-icon
MyQuestionIcon
MyQuestionIcon
7
You visited us 7 times! Enjoying our articles? Unlock Full Access!
Question

A's trial balance contains the following information :
Discount allowed, Rs 1,000
Provision for discount, Rs. 3,000 on debtors
It is desired to make a provision for discount on debtors, Rs. 3,500. The amount to be debited to profit and loss a/c is____________.

A
Rs. 4,500
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Rs. 4,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Rs. 1,500
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Rs. 500
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is C Rs. 1,500
P & L A/c to be debited = New provision +Discount allowed - old provision
= Rs 3,500 + Rs 1000 - Rs 3,000.
= Rs 1,500 to be debited.


flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Undersubscription
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon