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Chapter 7 Depreciation Provisions and Reserves Solutions

Question - 41 : - The following information is extracted from the Trial Balance of M/s Nisha Traders on 31 March 2017.

Sundry Debtors

80,500

Bad Debts

1,000

Provision for Bad Debts

5,000
Additional Information
Bad Debts Rs 500
Provision is to be maintained at 2% of Debtors
Prepare bad debts account, Provision for bad debts account and profit and loss account.

Answer - 41 : -

Bad Debt Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017 

 

 

 

Mar.31

Balance b/d

 

1,000

Mar.31

Provision for Bad Debts

 

1,500

Mar.31

Debtors

 

500

 

 

 

 

 

 

 

1,500

 

 

 

1,500

 

 

 

 

 

 

 

 

 

Provision for Bad debt Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

 

 

 

2017

 

 

 

Mar.31

Bad Debt

 

1,500

Mar.31

Balance b/d

 

5,000

Mar.31

Profit and Loss

 

1,900

 

 

 

 

Mar.31

Balance c/d

 

1,600

 

 

 

 

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

Profit and Loss Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount 

Rs

 

 

 

 

2017 

 

 

 

 

 

 

 

 Mar.31

Provision for Bad Debts

 

1,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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