While creating provision for discount on debtors, profit or loss account is:

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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%.

	Dr. (₹)	Cr. (₹)
Sundry Debtors (including Dewan for dishonoured bill of ₹ 20,000)	4,80,000	–
Provision for Doubtful Debts	–	24,000
Bad Debts	10,000	–

\frac{3}{4} th

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Debtors A/c To provision for Discount on Debtors A/c	Dr.

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