Following information is given in trail balance Bad debt Rs- 3-000 Provision for bad debts Rs- 3- 500 DebtorsRs- 40-000 Additional Information-It is desired to make a provision for doubtful debts -10- on debtors- Find the amount to be debited to profit and loss account-

Amount to be debited to profit and loss account = Rs. 3,500 nbsp; Provision for Doubtful Debts: [ Bad Debts amp; 3,000; (+) New Pr ...

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Standard XI

Accountancy

Logical Description of Accounting Equation(AE)

Following inf...

Question

Following information is given in trail balance

$\begin{matrix} Bad debt & R s . 3, 000 Provision for bad debts & R s . 3, 500 Debtors & R s . 40, 000 \end{matrix}$

Additional Information:

It is desired to make a provision for doubtful debts @10% on debtors. Find the amount to be debited to profit and loss account.

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Solution

Amount to be debited to profit and loss account = Rs. 3,500

Provision for Doubtful Debts:
$\begin{matrix} Bad Debts & 3, 000 (+) New Provision @ 10 % & 4, 000 - ---- - 7, 000 (-) Old Provision & (3, 500) - ------ - 3, 500 \end{matrix}$

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Similar questions

Prepare the bad debts account, provision for account, profit and loss account and balance sheet from the following information as on March 31, 2017

	Rs
Debtors	80,000
Bad debts	2,000
Provision for doubtful 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. 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 :

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%.

Rahul's trial balance provide you the following information:

$\begin{matrix} Debtors & R s . 80, 000 Bad debts & R s . 2, 000 Provision for bad debts & R s . 4, 000 \end{matrix}$

It is desired to maintain a provision for bad debts of Rs. 1,000. State the amount to be debited/credited in profit and loss account.

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Following information is given in trail balance Bad debtRs. 3,000Provision for bad debtsRs. 3,500DebtorsRs. 40,000 Additional Information: It is desired to make a provision for doubtful debts @10% on debtors. Find the amount to be debited to profit and loss account.

Amount to be debited to profit and loss account = Rs. 3,500 Provision for Doubtful Debts: Bad Debts 3,000(+) New Provision @ 10% 4,000–––––– 7,000(−) Old Provision (3,500)–––––––– 3,500

Amount to be debited to profit and loss account = Rs. 3,500

Provision for Doubtful Debts:
$\begin{matrix} Bad Debts & 3, 000 (+) New Provision @ 10 % & 4, 000 - ---- - 7, 000 (-) Old Provision & (3, 500) - ------ - 3, 500 \end{matrix}$