Question 18 Chapter No 16 – Class 11 Unimax -

Question 18 Chapter No 16 – Class 11 Unimax

From the following, pass journal entries and show the presentation of provision for doubtful in final accounts:

Extracts of Trial Balance as at 31.3.2020
Particulars	Debit	Credit
Sundry debtors	2,00,000
Bad debts	21,000
Provision for doubtful debts		40,000

Adjustments: Create a provision for doubtful debts @ 5% on sundry debtors.

The solution of Question 18 Chapter No 16 – Class 11 Unimax

Journal
Date	Particulars		L.F.	Debit	Credit
31.3.2020	Provision for doubtful debts A/c	Dr.		21,000
	To Bad debts A/c				21,000
	(Being bad debts written off)
31.3.2020	Provision for doubtful debts A/c	Dr.		19,000
	To New Provision for doubtful debts A/c				10,000
	To Profit & Loss A/c				9,000
	(Being excess provision written back)

Profit & Loss A/c for the year ended 31st March,2020
Particulars	Amount	Particulars		Amount
		By Old Provision for doubtful debts A/c	40,000
		Less: bad debts	21,000
			19,000
		Less: New Provision	10,000	9,000