Opening balance of debtors is Rs. 18,000. $5 %$ provision for bad debt is required to be provided on debtors. If the debtor's balance is increased during the year by Rs. 5,000 and the provision for bad debt has a debit balance of Rs. 350 after transferring bad debts, the charge against the profit and loss account is:

Rs. 1950

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

Rs. 1500

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

Rs. 650

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

Rs. 550

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

Open in App

Solution

The correct option is B Rs. 1500
Option B is correct.
New provision = 23000*5/100 = 1150
new provision = 1150
old provsion = (350)
Charge against profit and loss is = New provision - old provision
1150 - ( -350)
= 1500

Suggest Corrections

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:

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%.

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%.

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.

Join BYJU'S Learning Program

The correct option is B Rs. 1500Option B is correct. New provision = 23000*5/100 = 1150 new provision = 1150old provsion = (350)Charge against profit and loss is = New provision - old provision 1150 - ( -350) = 1500

The correct option is B Rs. 1500
Option B is correct.
New provision = 23000*5/100 = 1150
new provision = 1150
old provsion = (350)
Charge against profit and loss is = New provision - old provision
1150 - ( -350)
= 1500