Advertisement
Question 20 Chapter No 16 – Class 11 Unimax
Following are the extract from the trial balance of a firm:
| Trial Balance as at 31.3.2020 | |||
| Particulars | Debit | Credit | |
| Sundry debtors | 2,00,000 | ||
| Bad debts | 6,000 | ||
| Discount | 5,000 | ||
Adjustment information:
- Create a provision for doubtful debts @ 5% on debtors.
- Create a provision for discount on debtors @ 3%.
- Additional discount given to the debtors ₹ 2,000.
You are required to pass the necessary journal entries and show how the different items would appear in the profit and loss account and the balance sheet of the firm.
The solution of Question 20 Chapter No 16 – Class 11 Unimax
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| 31.3.2020 | Discount A/c | Dr. | 2,000 | ||
| To Sundry Debtors A/c | 2,000 | ||||
| (Being discount of ₹ 2,000 allowed to debtors) | |||||
| 31.3.2020 | Profit & Loss A/c | Dr. | 9,900 | ||
| To Provision for doubtful debts A/c | 9,900 | ||||
| (Being creation of provision for bad doubtful debts @5% on 1,98,000) | |||||
| 31.3.2020 | Profit & Loss A/c | Dr. | 5,643 | ||
| To Provision for discount on debtors A/c | 5,643 | ||||
| (Being provision for discount on debtors created @ 3% on ₹ 1,88,100) | |||||
| Profit & Loss A/c for the year ended 31st March,2020 | |||||
| Particulars | Amount | Particulars | Amount | ||
| To Bad debts | 6,000 | ||||
| Add: Further b/d | 9,900 | ||||
| 15,900 | |||||
| To Discount | 5,000 | ||||
| Add: Additional discount | 2,000 | ||||
| 7,000 | |||||
| Add: Provision for Discount | 12,643 | ||||
| Balance Sheet As at 31st March, 2020 | |||||
| Liabilities | Amount | Assets | Amount | ||
| Sundry Debtors | 2,00,000 | ||||
| Less: Add. Discount | 2,000 | ||||
| 1,98,000 | |||||
| Less: Provision | 9,900 | ||||
| 1,88,100 | |||||
| Less: Discount | 5,643 | 1,82,457 | |||
Advertisement