MENU
Question -

Prepare the bad debts account, provision for account, profit and loss account and balance sheet from the following information as on March 31, 2017

 

₹

Debtors

80,000

Bad debts

2,000

Provision for doubtful debts

5,000
 Adjustments: 
Bad Debts ₹ 500 Provision on Debtors @ 3%.



Answer -

Profit and Loss Account

Dr.

Cr.

Particulars

Amount

₹

Particulars

Amount

₹

Bad Debts

2,000

Old Provision for Doubtful Debts

5,000

Add: Further Bad Debts

500

Add: New Provision for Bad Debts

2,385

4,885

Balancing figure

115

5,000

5,000

Balance Sheet

Liabilities

Amount

₹

Assets

Amount

₹

Debtors

80,000

Less: Further Bad Debts

500

Less: New Provision on Debtors

2,385

77,115

77,115

 

Bad Debts Account

Dr.

Cr.

Date

Particulars

Amount

₹

Date

Particulars

Amount

₹

2017

2017

Dec.31

Balance b/d

2,000

Dec.31

Provision for Doubtful Debts

2,500

(as per the Trial Balance)

Dec.31

Sundry Debtors

500

2,500

2,500

Provision for Doubtful Debts Account

Dr.

Cr.

Date

Particulars

Amount

₹

Date

Particulars

Amount

₹

2017

2017

Dec.31

Bad Debts

2,500

Jan.01

Balance b/d (Old Provision)

5,000

Dec.31

Balance b/d

2,385

(New Provision)

Dec.31

Profit and Loss

115*

(Balancing Figure)

5,000

5,000

 

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
NodeJS Interview Questions Answers
ASP.Net Interview Questions Answers
Interview Questions Answers
×