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प्रश्न
The following are the extracts from the trial balance.
Sundry debtors ₹ 30,000; Bad debts ₹ 5,000
Additional information:
(a) Write off further bad debts ₹ 3,000.
(b) Create 10% provision for bad and doubtful debts.
You are required to pass necessary adjusting entries and show how these items will appear in the profit and loss account and balance sheet.
उत्तर
Adjusting Entries
| Particulars | L.F. | Debit ₹ | Credit ₹ |
| Bad debts A/c Dr. To Sundry debtors A/c (Bad debts written off) |
3,000 | 3,000 | |
| Profit and loss A/c Dr. To Provision for bad and doubtful debts A/c (Provision for bad and doubtful debts @ 10%) |
2,700 | 2,700 |
Profit and Loss Account
Dr. Cr.
| Particulars | ₹ | ₹ | Particulars | ₹ |
| To Bad debts (TB) | 5,000 | 10,700 | ||
| Add: Further bad debts (adjusted) | 3,000 | |||
| 8,000 | ||||
| Add: Provision for bad and doubtful debts |
2,700 |
Balance Sheet
| Liabilities | ₹ | Assets | ₹ | ₹ |
| Sundry debtors | 30,000 | 24,300 | ||
| Less: Bad debts | 3,000 | |||
| 27,000 | ||||
| Less: Provision for bad and doubtful debts @ 10% |
2,700 |
APPEARS IN
संबंधित प्रश्न
What is outstanding expense?
What is prepaid expense?
What is the provision for discounts on debtors?
Pass adjusting entries for the following:
- The closing stock was valued at ₹ 5,000
- Outstanding salaries ₹ 150
- Insurance prepaid ₹ 450
- ₹ 20,000 was received in advance for commission.
- Accrued interest on investments is ₹ 1,000.
For the fol owing adjustments, pass adjusting entries:
- Outstanding wages ₹ 5,000.
- Depreciate machinery by ₹ 1,000.
- Interest on capital @ 5% (Capital: ₹ 20,000)
- Interest on drawings ₹ 50
- Write off bad debts ₹ 500
The trial balance on March 31, 2016, shows the following:
Sundry debtors ₹ 30,000; Bad debts ₹ 1,200
It is found that 3% of sundry debtors is doubtful of recovery and is to be provided for. Pass journal entry for the amount of provision and also show how it would appear in the profit and loss account and balance sheet.
The trial balance of a trader on 31st December 2016 shows debtors as ₹ 50,000.
Adjustments:
- Write off ₹ 1,000 as bad debts
- Provide 5% for doubtful debts
- Provide 2% for discount on debtors
Show how these items will appear in the profit and loss A/c and balance sheet of the trader.
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.
The following are the extracts from the trial balance.
| Particulars | Debit ₹ | Credit ₹ |
| Sundry debtors | 50,000 | |
| Discount on debtors | 2,000 | |
| Bad debts | 3,000 |
Additional information:
(a) Create a provision for doubtful debts @ 10% on sundry debtors.
(b) Create a provision for discount on debtors @ 5% on sundry debtors.
You are required to pass necessary adjusting entries and show how these items will appear in the final accounts.
Prepare profit and loss account of Manoj for the year ending on 31st March 2016
| Particulars | ₹ | Particulars | ₹ |
| Gross profit | 25,000 | Travelling expenses | 500 |
| Salaries | 5,600 | Stationery | 75 |
| Insurance | 200 | Rent | 650 |
| Discount allowed | 400 | Interest on loan | 225 |
| Discount received | 300 | Repairs | 125 |
| Commission received | 100 | Office expenses | 55 |
| Advertisement | 450 | General expenses | 875 |
| Printing charges | 375 | Postage | 175 |
Adjustments:
(a) Salary outstanding ₹ 400
(b) Rent paid in advance ₹ 50
(c) Commission receivable ₹ 100
