ease explain the treatment of bad debts , new bad debts,provision for doubtful debts, bad debts written off in preparation of final accounts.

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Solution

Dear Student, New Bad-Debts and Bad-Debts written is one and same thing.
The Treatment of Bad-Debts, New/Further Bad-Debts, New Provision for Bad and Doubtful Debts on the Debit side of Profit and Loss Account is as follows:

Particulars Amount

Bad-Debts (as given in the Trial Balance) xxx

Add: New/Further Bad-Debts/Bad-Debts Written off (as given in the adjustment) xxx

Add: New Provision for Bad-Debts and Doubtful Debts (as the rate or amount given in the adjustment) xxx

Less: Old Provision for Bad and Doubtful Debts (as given in the Trial Balance) (xxx) xxxx

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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. Making the provision for bad and doubtful debts in anticipation of actual bad debts is on basis of _________.

Q. Question: An extract of Trial balance from the books of Tahiliani and Sons Enterprises on December 31, 2005, is given below.

Name of Account	Debit Amt. (Rs)	Credit Amt. (Rs)
Sundry debtors	$50, 000$
Bad debts	$6, 000$
Provision for doubtful debts		$4, 000$

Additional Information
Bad Debts proved bad not recorded amounted to Rs

2, 000

.
Provision is to be maintained at

8 %

of Debtors.
Give necessary accounting entries for written off the bad debts and creating the provision for doubtful debts account. Also, show the necessary accounts.

An extract of Trial balance from the books of Tahiliani and Sons Enterprises on Marc 31 2017 is given below:

Name of the Account	Debit Amount Rs	Credit Amount Rs

Sundry debtors	50,000
Bad debts	6,000
Provision for doubtful debts		4,000

Additional Information:

Give necessary accounting entries for writing off the bad debts and creating the provision for doubtful debts account. Also, show the necessary accounts.

Q. Making the provision for bad and doubtful debts in anticipation of actual bad debts on the basis of _________________.

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Particulars		Amount
Bad-Debts (as given in the Trial Balance)	xxx
Add: New/Further Bad-Debts/Bad-Debts Written off (as given in the adjustment)	xxx
Add: New Provision for Bad-Debts and Doubtful Debts (as the rate or amount given in the adjustment)	xxx
Less: Old Provision for Bad and Doubtful Debts (as given in the Trial Balance)	(xxx)	xxxx