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

Bad debts A/c Dr

To Debtors A/c

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Bad debts A/c Dr

To Provision for doubtful debts A/c

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Provision for discount on debtors A/c Dr

To Profit & Loss account

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Profit & Loss A/c Dr

To Provision for discount on debtors A/c

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Solution

The correct option is D
Profit & Loss A/c Dr

To Provision for discount on debtors A/c

The correct adjusting entry is:
Profit & Loss A/c Dr
To Provision for discount on debtors A/c

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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.

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%.

Is provision for discount on debtors made before making provision for doubtful debts?

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.

Debtors: Rs. 30,000. Bad debts: Rs. 300, provision for bad debt 5% on debtors, discount on debtors 2%.
Calculate the correct amount of provision for discount on debtors.

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

The correct option is D Profit & Loss A/c Dr To Provision for discount on debtors A/c The correct adjusting entry is: Profit & Loss A/c Dr To Provision for discount on debtors A/c

The correct option is D
Profit & Loss A/c Dr

To Provision for discount on debtors A/c

The correct adjusting entry is:
Profit & Loss A/c Dr
To Provision for discount on debtors A/c