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Question

# C's Trial Balance contains the following information: Bad debts Rs. 8,000, Provision for Doubtful debts Rs. 6,000, Sundry debtors Rs. 25,000.It is desired to create a provision for bad debts at 10% on Sundry debtors at the end of the year. Sundry debtors (after provision) will appear in Balance Sheet at a figure of :

A
Rs.22,500
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B
Rs.21,000
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C
Rs.18,000
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D
Rs.15,500
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Solution

## The correct option is B Rs.22,500Sundry debtors after provision = Sundry debtors before provision - Provision = 25,000 - 10% of 25,000 = RS-22,500.

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