Provision for doubtful debts is Rs.1000 &
debtors are Rs.90,000 at end of year,
provision for doubtful debt 1% required, then
the entry
a) P & L A/c Dr 900
To provision for doubtful debts 900
b) Provision for doubtful debts 900
To P & C A/c 900
c) P & L A/c Dr 100
To RDD A/c 100
d) none of these
what is the answer n reason for the same????????
If the amount you mentioned i.e. provision for doubtful debts is your opening balance it needs to be reversed in current year and the answer is
a) only because you transfer the provision to P&L a/c for the doubtful portion of debtors....
Thanks karthika
Ok... but how was this helpful to u? u had some doubts or doing it practically>?
I was having doubt
in our firm some of bills are erecurable,(from 9-10)(10-11).
so please sujest idea for balance sheet
D.NImsarkar
a
CAclubindia
