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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 |
Balance Sheet As at 31st March, 2020 | |||||
Liabilities | Amount | Assets | Amount | ||
Sundry debtors | 2,00,000 | ||||
Less: New Provision | 10,000 | 1,90,000 |
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