Provision for Discount on Debtors is ___________ to Profit and loss account.

Debited

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Solution

The correct option is A Debited
The double effect of Provision for Discount on Debtors is:
It is shown on the debit side of Profit and Loss Account.
It is shown as deduction from Debtors in Balance Sheet.

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Similar questions

Q. While preparing final account, to make provision for discount on debtors. which of the following adjustment entry will be passed?

Provision for Discount on Debtors A/c To Debtors A/c	Dr.
Profit & Loss A/c To Provision for Discount on Debtors A/c	Dr.
Provision for Discount on Debtors A/c To Trading A/c	Dr.
Debtors A/c To provision for Discount on Debtors A/c	Dr.

Q. D's Trial Balance contains the following information: Discount allowed Rs. 500, Provisions for discount on debtors Rs. 1,100. It is desired to make a provision for discount on debtors of Rs. 1,800 at the end of the year. The amount to be debited to the Profit & Loss Account is:

What is the correct accounting adjustment entry to record provision for discount on debtors?

In case of actual discount when provision for discount on debtors is made, the discount account is debited with a corresponding credit in _____account.

From the following trial balance, prepare trading account, profit and loss account for the year ended 31st December, 2016.

$\begin{matrix} Particulars & Amt. (Rs.) & Particulars & Amt. (Rs.) Opening Stock & 10, 000 & Sales & 5, 20, 000 Purchases & 3, 00, 000 & Purchases Returns & 10, 000 Debtors & 1, 40, 000 & Creditors & 1, 00, 000 Drawings & 20, 000 & Provision for Bad Debts & 4, 000 Sales Returns & 16, 000 & Bills Payable & 30, 000 Wages & 24, 000 & Bank Overdraft & 20, 000 Salaries & 40, 000 & Capital & 7, 20, 000 Repairs & 12, 000 Bad Debts & 8, 000 Carriage & 4, 000 Discount & 6, 000 Land and Building & 4, 00, 000 Plant and Machinery & 3, 00, 000 Furniture and Fixtures & 80, 000 Cash & 4, 000 Goodwill & 40, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 14, 04, 000 - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 14, 04, 000 - --------- - \end{matrix}$

Adjustments:

(i) Closing stock Rs. 40,000

(ii) Further bad debts Rs. 6,000.

(iii) Create a provision for doubtful debts @ 5%.

(iv) Create a provision for discount on debtors and creditors @ 2%.

(v) Change depreciation on plant and machinery and furniture and fixtures @ 10% per annum.

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Provision for Discount on Debtors is ___________ to Profit and loss account.

The correct option is A DebitedThe double effect of Provision for Discount on Debtors is:It is shown on the debit side of Profit and Loss Account. It is shown as deduction from Debtors in Balance Sheet.

The correct option is A Debited
The double effect of Provision for Discount on Debtors is:
It is shown on the debit side of Profit and Loss Account.
It is shown as deduction from Debtors in Balance Sheet.