Question 17 Chapter No 16 – Class 11 Unimax -

Question 17 Chapter No 16 – Class 11 Unimax

From the following, pass journal entry and show the presentation of provision for doubtful debts in final accounts.

Extracts of Trial Balance as at 31.3.2020
Particulars	Debit	Credit
Bad debts	5,000
Provision for doubtful debts 1.4.2019		6,000
Sundry debtors	1,80,000

Adjustment: provision for doubtful debts is to created @ 5% on sundry debtors.

The solution of Question 17 Chapter No 16 – Class 11 Unimax

Journal
Date	Particulars		L.F.	Debit	Credit
31.3.2020	Provision for doubtful debts A/c	Dr.		5,000
	To Bad debts A/c				5,000
	(Being bad debts written off)
31.3.2020	Profit & Loss A/c	Dr.		8,000
	To Provision for doubtful debts A/c				8,000
	(Being provision doubtful debts is created with the amount of difference)

Profit & Loss A/c for the year ended 31st March,2020
Particulars		Amount	Particulars	Amount
To bad debts	5,000
Add: New provision	9,000
	14,000
Less: Old provision	6,000	8,000