Question

Provision for debt was to be made equal to debtors meaning ​

Answer 1

Answer:

A provision for doubtful debts was to be made equal to 5% of the debtors??? what does it mean how to treat this?? ... But now as the adjustment says that provision has to be created and that too up to 5% of debtors (i.e. Rs 1,500), so this certainly means that the amount of good debtors has reduced by Rs 1,500.

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