Question

If the provision for bad debts account has a credit balance of Rs. 55 and provision for the year is Rs. 310. The amount to be charged against the profit and loss account is

Answer 1

Answer:

very nice question I will not solve you have to solve yourself

Answer 2

The amount for profit and loss account is ₹255

Sometimes, when you do business, your debtors may not pay you the amount they owe to you due to certain reasons. Because of this, you have to suffer from unexpected losses. To cover this unexpected loss we create a provision in advance for the debtors who may not pay their debt. Given in the question that provision for the year is ₹310 and balance in the account is ₹55. The amount for the profit and loss account will be:

= provision for the year - balance in the account

= 310 - 55

= ₹255