Question

From the following figures, you are required to prepare Profit and Loss A/c.

Debtors Rs. 20,000, Bad debts Rs.1,870

Adjustment information : make provision for bad debts at 5% on debtors.​

Answer 1

Answer:

working note

debtors 20,000 - 1870 = 18130 - 5% (907)

=17224

Explanation:

on p&l

Dr side

To debtors. 17,224