Question

A Trial Balance contains the following information: Discount received Rs. 2,000, Provision for discount on creditors Rs.1,600. It is desired to maintain a provision for discount on creditors at Rs. 1,100. The amount to be credited to the Profit and Loss Account is __________.

• A. Rs. 2,500
• B. Rs. 3,500
• C. Rs.2,000
• D. Rs.1,500

Answer 1

The correct option is D Rs.1,500

discount received 2000 + desired to maintain a provision for discount on creditors 1100 - provision for discount on creditors 1600 = 1500.