Question

The sundry debtors in the books of a trader were Rs500000 create a provision for doubtful debts @5% on debtor. Pass necessary entries and show the impact on profit & loss a/c and balance sheet

Answer 1

impact on profit and loss accounts debit side and second effect on balance sheet less from Debtor

Answer 2

Hyyy mate here is your journal entry and it is shown in balance sheet ...

500000×5%= 25000

Hope you will understand....