Question

A provision for doubtful dets be maintained at existing rate

Answer 1

Answer:

Dear Simple, in this question the existing rate of Provision for Doubtful Debts on Debtors is 5% (i.e.Rs 1,600 = Rs 32,000 × 5%). Therefore, the new rate should also be 5% on 29,800 ( Note: There is no such provision which states that the rate of Provision for Doubtful Debts should always be 5%.