1.

(When Provision for Doubtful Debts is not given in the Trial Balance).Following is the extract form the Trial Balance of Dass as at 31st March, 2019: Additional Information : Create a Provision for Doutful Debts @5% on Sundry Debtors. Pass neccessary entry and show these items in the Profit and Loss Account and Balance sheet.

Answer»

Solution :
It should be NOTED that the SUNDRY DEBTORS Account will not be affected by creating PROVISION for Doubtful Debts. It means provision does not amount receivable FORM debtors .


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