CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

The following balances appeared in the trial balance of M/s Kapil Traders as on March 31, 2017

 

 

Rs

Sundry debtors

30,500

Bad debts

500

Provision for doubtful debts

2,000

 

The partners of the firm agreed to records the following adjustments in the books of the Firm: Further bad debts Rs.300. Maintain provision for bad debts 10%. Show the following adjustments in the bad debts account, provision account, debtors account, profit and loss account and balance sheet.


Solution

Profit and Loss Account

Dr.

           

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Bad Debts

500

 

     

 

 

Add: Further Bad Debts

300

       

 

 

Add: New Provision

3,020

       

 

 

Less: Old Provision

2,000

1,820

     

 

 

 

 

       

 

 

 

 

       

 

 

 

 

 

     

 

                 

 

Balance Sheet

Liabilities

Amount

Rs

Assets

Amount

Rs

 

   

 

Debtors 

30,500

 

 

 

 

   

Less: Further Bad Debts

300

 

 

 

 

   

Less: New Provision

3,020

27,180

 

 

 

     

 

 

 

   

 

   

 

 

 

 

 

 

 

 

 

 

 

Debtors Account

Dr.

Cr.

Date

Particulars

Amount

Rs

Date

Particulars

Amount

Rs

2017

   

2017

   

March 31

Balance b/d

30,500

March 31

Further Bad Debts

300

 

 

 

March 31

Provision for Doubtful Debts

3,020

 

 

 

March 31

Balance c/d

27,180

 

 

 

 

 

 

 

 

30,500

 

 

30,500

 

 

 

 

 

 

             

 

Bad Debts Account

Dr.

Cr.

Date

Particulars

Amount

Rs

Date

Particulars

Amount

Rs

2017

   

2017

   

March 31

Balance b/d

500

March 31

Provision for Doubtful Debts

800

 

(As per the Trial Balance)

 

   

 

 

 

 

   

 

March 31

Sundry Debtors

300

 

 

 

 

 

800

 

 

800

 

 

 

 

 

 

             

 

Provision for Doubtful Debts Account

Dr.

Cr.

Date

Particulars

Amount

Rs

Date

Particulars

Amount

Rs

2017

   

2016

   

March 31

Bad Debt

800

April 01

Balance b/d (Old Provision)

2,000

 

 

 

April 01

Profit and Loss

1,820

 

 

 

 

(Balancing figure)

 

March 31

Balance b/d

3,020

 

 

 

 

(New Provision)

 

 

 

 

 

 

3,820

 

 

3,820

 

 

 

 

 

 

             

 


Accountancy
Financial Accounting- II - NCERT Solutions (2019)
All

Suggest Corrections
thumbs-up
 
0


similar_icon
Similar questions
View More


similar_icon
Same exercise questions
View More


similar_icon
People also searched for
View More



footer-image