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प्रश्न
The following are the extracts from the trial balance.
| Particulars | Debit ₹ | Credit ₹ |
| Sundry debtors | 50,000 | |
| Provision for doubtful debts | 5,000 | |
| Bad debts | 3,000 |
Additional information:
(a) Additional bad debts ₹ 3,000.
(b) Keep a provision for bad and doubtful debts @ 10% on sundry debtors.
You are required to pass necessary adjusting entries and show how these items will appear in the profit and loss account and balance sheet.
खातेवही
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उत्तर
Adjusting Entries
| Date | Particulars | L.F. | Debit ₹ | Credit ₹ |
| Bad debts A/c Dr. To Sundry debtors A/c (Bad debts writte off) |
3,000 | 3,000 | ||
| Provision for bad and doubtful debts A/c Dr. To Bad debts A/c (Bad debts transferred to provision for bad and doubtful debts A/c) (3000 + 3000) |
6,000 | 6,000 | ||
| Profit and loss A/c Dr. To Provision for bad and doubtful debts A/c (Provision for bad and doubtful debts created) |
5,700 | 5,700 |
Profit and Loss A/c
| Dr. | Cr. | ||||
| Particulars | ₹ | ₹ | Particulars | ₹ | |
| To Bad debts (TB) | 3,000 | 5,700 | |||
| Add: Additional bad debts | 3,000 | ||||
| 6,000 | |||||
| Add: New provision for doubtful debt | 4,700 | ||||
| 10,700 | |||||
| Less: Old provision for bad and doubtful debts | 5,000 | ||||
Balance Sheet
| Liabilities | ₹ | Assets | ₹ | ₹ |
| Sundry debtors | 50,000 | 42,300 | ||
| Less: Additional Bad debts | 3,000 | |||
| 47,000 | ||||
| Less: New provision for bad and doubtful debts |
4,700 |
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