Debtors: Rs. 30,000. Bad debts: Rs. 300, provision for bad debt 5% on debtors, discount on debtors 2%.
Calculate the correct amount of provision for discount on debtors.

Rs. 29,700

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Rs. 1,485

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Rs. 564

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Rs. 600

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Solution

The correct option is C
Rs. 564

Debtors 30,000

Less: Bad Debts (300)

29,700

Less: Provision for bad debts (1,485) (29,7005%)

28,215

Provision for discount on debtors 564 (28,2152%)

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Similar questions

Q. H's Trial Balance contains the following information:
Bad debts Rs. 3,000
Discount allowed Rs. 3,000
Provision for discount on debtors Rs.3,200
Provision for bad debts Rs. 3,500
Sundry Debtors Rs. 50,000
At the end of the year, it is desired to maintain a provision for bad debts at Rs. 4,000 and provision for discount on debtors at Rs. 2,000. Sundry Debtors will appear in the Balance Sheet at a figure of:

Prepare the bad debts account, provision for bad debts account, profit and loss account and balance sheet from the following information as on December 31, 2011.

Rs.

Debtors 80,000

Bad Debtors 2,000

Provision for bad debts 5,000

Adjustments:

Bad debts Rs. 500, Provision on debtors @ 3%.

Q. Prepare the bad debts account, provision for bad debts account, profit and loss account and balance sheet from the followii information as on December, 31, 2011.
(Rs.)
Debtors 80,000
Bad Debts 2,000
Provision for bad debts 5,000
Adjustments
Bad debts Rs. 500, Provision on debtors @ 3%.

Q. Sundry Debtors closing balance Rs. 20000 , Further Bad debts Rs. 1000 , Provision for Bad Debts 5% , Ascertain the amount of Provision______.

Q. Sundry debtors given in the Trial Balance are Rs. 20000. Further bad debts amounted to Rs. 1000 and it is desired to create a provision of

5 %

on debtors for doubtful debts and

2 %

for discount. Sundry Debtors will appear in the Balance Sheet at a figure of________.

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Debtors	30,000
Less: Bad Debts	(300)
	29,700
Less: Provision for bad debts	(1,485)	(29,700*5%)
	28,215
Provision for discount on debtors	564	(28,215*2%)

Debtors: Rs. 30,000. Bad debts: Rs. 300, provision for bad debt 5% on debtors, discount on debtors 2%. Calculate the correct amount of provision for discount on debtors.

The correct option is C Rs. 564 Debtors 30,000 Less: Bad Debts (300) 29,700 Less: Provision for bad debts (1,485) (29,700*5%) 28,215 Provision for discount on debtors 564 (28,215*2%)

Debtors: Rs. 30,000. Bad debts: Rs. 300, provision for bad debt 5% on debtors, discount on debtors 2%.
Calculate the correct amount of provision for discount on debtors.

The correct option is C
Rs. 564

Debtors 30,000

Less: Bad Debts (300)

29,700

Less: Provision for bad debts (1,485) (29,7005%)

28,215

Provision for discount on debtors 564 (28,2152%)