1.

An extract of Trial balance from the books of Tahiliani and Sons Enterprises on Marc 31 2017 is given below: Name of the Account Debit Amount Rs Credit Amount Rs Sundry debtors 50,000 Bad debts 6,000 Provision for doubtful debts 4,000 Additional Information: Bad Debts proved bad; however, not recorded amounted to Rs 2,000. Provision is to be maintained at 8% of debtorsGive necessary accounting entries for writing off the bad debts and creating the provision for doubtful debts account. Also, show the necessary accounts.

Answer»

An extract of Trial balance from the books of Tahiliani and Sons Enterprises on Marc 31 2017 is given below:
































Name of the Account



Debit Amount



Rs



Credit Amount



Rs









Sundry debtors



50,000





Bad debts



6,000





Provision for doubtful debts





4,000






Additional Information:




  • Bad Debts proved bad; however, not recorded amounted to Rs 2,000.

  • Provision is to be maintained at 8% of debtors



Give necessary accounting entries for writing off the bad debts and creating the provision for doubtful debts account. Also, show the necessary accounts.








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