Question

Approx.
Insurance and Provision for Bad and Doubtful Debts
9. A purchases a plant from B on instalment system on Jan. 1, 2002. Its cash price is = 50,000. 5 20,000 were
paid immediately. Balance of the amount was payable in three yearly instalments of 7 10,000 each. The
instalment due on 31st December each year is paid on 1st January of the next year. B charges 10% p. a. interest
and insurance premium @ 2% p.a. in addition to the amount of instalment from A. B makes a provision of 10%
for bad and doubtful debts. Prepare necessary accounts in the books of B.
Ans. Provision for bad and doubtful debts I yr. * 3,360; II yr. * 2,240; III yr. * 1,120; Insurance premium I yr.
600; II yr. 7 400; III yr. 200. Int. Suspense * 6,000; Int. I yr. 3,000; II yr. * 2,000 and III yr. * 1,000.​

Answer 1

Answer:

1000.000 ans hai bhai haa