Sundry debtors rupees 40000. As regard debtors it is ascertain that rupees 1000 are irrecoverable and they provision of 2% is to be created on sundry debtors
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debtors - bad debts
40000-1000
=39000
PDD = 39000×2/100
=780
therefore total debtors
=39000-780
=38220
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