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Question 2 Chapter 12 – Class 11 Unimax
An extract of the trial balance from the books of Tahiliani and sons enterprise on December 31, 2019, is given below:
| Name of the account | Dr. Amount | Cr. Amount |
| Sundry debtors | 50,000 | |
| Bad debts | 6,000 | |
| Provision for doubtful debts | 4,000 |
Addition information-
*Bad debts proved bad but not recorded amounted to ₹ 2,000.
*Provision is to be maintained at 8% of debtors.
Give necessary accounting entries for writing off the bad debts and crediting the provision for doubtful debts account. Also show the necessary accounts.
The solution of Question 2 Chapter 12 – Class 11 Unimax
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| 2019 | |||||
| Dec.31 | Bad debts A/c | Dr. | 2,000 | ||
| To debtors A/c | 2,000 | ||||
| (Being further bad debts written off) | |||||
| Dec.31 | Provision for doubtful debts A/c | Dr. | 8,000 | ||
| To Bad debts A/c | 8,000 | ||||
| (Being total bad debts transferred to provision a/c) | |||||
| Dec.31 | Profit & Loss A/c | Dr. | 7,840 | ||
| To Provision for doubtful debts A/c | 7,840 | ||||
| (Being net amount charged from P&L A/c) | |||||
| Dr | Bad debts A/c | Cr | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 2019 | 2019 | ||||||
| Dec.31 | To Balance b/d | 6,000 | Dec.31 | By provision for doubtful debts A/c | 8,000 | ||
| Dec.31 | To Sundry Debtors A/c | 2,000 | |||||
| 8,000 | 8,000 | ||||||
| Dr | Provision for doubtful debts A/c | Cr | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 2019 | 2019 | ||||||
| Dec.31 | To Bad debts A/c | 8,000 | Jan.1 | By Balance b/d | 4,000 | ||
| Dec.31 | To Balance c/d | 3,840 | Dec.31 | By profit & loss A/c | 7,840 | ||
| 11,840 | 11,840 | ||||||
| 2020 | |||||||
| Jan.1 | By Balance b/d | 3,840 | |||||
| Dr | Profit & Loss A/c | Cr | |
| Particulars | Amount | Particulars | Amount |
| To Provision for doubtful debts A/c | 7,840 | ||
Working Note:
| Net amount chargeable to P & L a/c | |
| Bad debts | 6,000 |
| Add: further bad debts | 2,000 |
| 8,000 | |
| Add: New provision (8%on ₹ 48,000) | 3,840 |
| 11,840 | |
| Less: old provision | 4,000 |
| 7,840 |
End of Solution
Check Out the Solution of all questions for this chapter:
The solutions to all questions of Chapter No. 12 – Provision and Reserves Unimax are shown as follows, click on the image of the question to get the solution.
Question 1 Chapter 12 – Class 11 Unimax
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1. Comprehensive Solutions for All Chapters of Advanced Accountancy I Class 11 by Unimax
UnimaxSolutions.in offers a comprehensive solution for students studying Advanced Accountancy I Part 1 in Class 11. With their meticulously curated study material, students can access comprehensive solutions to all the questions included within each chapter. By selecting the chapter name from the study material, students can easily navigate through the topics and find detailed explanations and step-by-step solutions to the problems presented in that section. Whether it’s understanding complex accounting concepts, mastering calculation techniques, or analyzing financial statements, Unimax provides a valuable resource to aid students in their learning journey. With these comprehensive solutions at their disposal, students can enhance their understanding, clarify doubts, and improve their problem-solving skills in Advanced Accountancy, ensuring they are well-prepared for their Class 11 examinations.
- Chapter No. 1 – Introduction of Accounting
- Chapter No. 2 – Theory Base of Accounting
- Chapter No. 3 – Vouchers and Transactions
- Chapter No. 4 – Journal
- Chapter No. 5 – Goods and Services Tax (GST): An Introduction
- Chapter No. 6 – Ledger
- Chapter No. 7 – Special Purpose Book – Cash Book
- Chapter No. 8 – Other Subsidiary Books
- Chapter No. 9 – Trial Balance
- Chapter No. 10 – Rectification of Errors
- Chapter No. 11 – Depreciation
- Chapter No. 12 – Provision and Reserves
- Chapter No. 13 – Bank Reconciliation Statement
- Chapter No. 14 – Bills of Exchange
- Chapter No. 15 – Financial Statements (Without Adjustments)
- Chapter No. 16 – Financial Statements (With Adjustments)
- Chapter No. 17 – Accounts from Incomplete Records – Single Entry System
2. Punjab School Education Board (PSEB) Solutions of Usha Publication.
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