AB sole trading concern has debtors at the year end amounting to Rs. 2,18,000. One of the debtors, value Rs.8000, is now known to be uncollectable. The company takes a 5% provision for bad debts each year. How much will be the provision for bad debts to be shown in the profit and Loss account
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Sundry debtors. 218000
- bad debt. 8000
balance. 210000
-provision for
doubtful debt. 10500
balance. 199500
₹10500 for provision for doubtful debt shown in profit and loss account
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