MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Realisation of Assets (Dissolution)

It may be not...

Question

It may be noted that provision created at the end of the year will be carried forward to meet the _________ during next year.

A

Bad debts

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

Discount Allowed

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Discount Received

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

None

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D Bad debts
Provision for bad debts is created because of principle of conservatism. It is created to write off the loss that may arise due to failure on the part of some debtors to pay debts. Provision created at the end of the year is carried forward to meet the bad debts during next year because provision is made to future losses due to bad debts.

Suggest Corrections

thumbs-up

0

Similar questions

Q. The company maintains provision for bad debts at

5 %

and its outstanding debtors at the end of the year was Rs 3,00,000. During the year, opening balance of provision for bad debt was Rs. 5000 and bad debt during the year was Rs. 10,000. The debit to profit and loss account for the year ended in respect of provision for debtors will be:

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 :

Q. A Trial Balance contains the following information :

Bad debts	Rs.5,000
Discount allowed	Rs.4,000
Provision for discount on debtors	Rs.2,000
Provision for Doubtful Debts	Rs.5,000
Sundry Debtors	Rs.50,000

At the end of the year, it is desired to maintain a provision for debts at Rs. 4,000 and provision for discount on debtors at Rs.2,000. Sundry Debtors (after provision) will appear in the Balance Sheet at a figure of :

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:

Q. A flood having a return period of 50 years . The risk that this flood may occur in next 20 years will be ___________

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Let’s Settle

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Realisation of Assets (Dissolution)

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon