Periyar, B.Com., April/May 2002)
[Ans : Debit to P&L a/c : Rs.370)
88]
une
to be written off
. On December 1995, the Debtors were Rs. 76,900 out of which
Rs.1,900 had to be written off as bad debts. The firm creates a bad debts provision to
the extent of 5% on the debtors.
Make the necessary journal entries and show the provision for Bad & Doubtful debts
A/c for 1994 & 1995.
[Ans: In 1994 Debit P & L A/c Rs. 6,050;
The provision for Bad & Doubtful debts stood at Rs. 3,200 on 31st December 1993.
On 31st December 1994, Debtors stood at Rs. 1,42,250 out of which Rs. 2,250 had
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