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.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D B
Adjustment entry is
Profit and Loss A/c dr.
To Provision for Discount on Debtors A/c

Suggest Corrections

Similar questions

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

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

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.

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:

Q. Provision for Discount on Debtors Account is ______________.

Join BYJU'S Learning Program

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.

The correct option is D BAdjustment entry is Profit and Loss A/c dr. To Provision for Discount on Debtors A/c

The correct option is D B
Adjustment entry is
Profit and Loss A/c dr.
To Provision for Discount on Debtors A/c