Question

On 1st January, 2016, provision for doubtful debts account of company showed a
credit balance of 1,600. In 2016, the bad debts amounted to 1.200. On 31st
December, 2016 debtors were 58,000 and provision for doubtful debts was to
be made @ 5%. In 2017, bad debts were 2.400. On 31st December, 2017,
debtors were * 60,000 and provision for doubtful debts was to be made @5%. In
2018, bad debts were 1.600 and 1.000 were recovered from a debtor the
account of which was written off in 2016 as bad debts. On 31-12-2018, debtors
were 45.000, on which provision for doubtful debts was to be made @ 5%
Make necessary journal entries for three years and prepare provision for doubtful
debts account and profit and loss account.​

Answer 1

Explanation:

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