Debtors(including X for dishonoured bill of Rs 1000 ) written in debit side of trial balance and the amount of debtor is 30000 and in adjustment- half the amount of X's bill is irrecoverable. create a provision on debtors of 5%.
In the answer, 1000 is subtracted from 30000 and provision is created on the balance. that's what I couldn't figure out, like the reason. { it's given inside the trial balance so maybe something to do with that}
Yes on balance bad debt should be created but the dishonoured bill should be deducted 1000 rupees because provisions should be created on whole balance
CAclubindia
