Question

sundry debtors=Rs50000.Bad debt reserve(cr.)=rs1200.
and additional information
written off bad debts =rs 500. and create bad debts [email protected]%on sundry debtors.How to solve this problem

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Answer 1

Answer: journal entries :

Bad debts a.c. dr. 500

To sundry debtors a.c .500

Profit and loss a.c. dr. 1238

To provision for bad and doubtful debts a.c. 1238