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10. The Trial Balance of Siva as on 31.12.2019: :Debtors 80,000Bad debts 1000Provision for Bad debts 2000You are required to provide for bad and doubtful debts at 5% on Debtors. Giveeffect on PAL Alc and Balance Sheet​

Answer»

Answer:

working note

5%80000=4000

bad debts (1000+4000) PROVISON for doubtful debts on debtors

p&l a/c

write down it on debit side as

bad debts - 1000

provision -4000

5000

minus (old provision) 5000-2000

3000

Write on balance sheets on asset side as

debtors- 80000

(-) new provision 4000

76000

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