X Ltd.’s profit and loss account for the year ended 31st December, 2011 includes the following information
Depreciation – 84,500
Bad Debts – 2,500
Increase in provision for doubtful debts – 22,000
Proposed dividend – 73,200
Retained profit for the year – 1,22,000
Liability of tax – 26,400
State what amounts should be transferred to:- (i) Provisions (ii) Reserves (iii) Neither related to provisions nor reserves
      Prov              Res               No Prov/Res
  • a)
    1,21,600          1,22,000            87,000
  • b)
    95,200             1,22,000           1,13,400
  • c)
    1,22,000          95,200                Nil
  • d)
    1,22,000         1,21,600              Nil
Correct answer is option 'A'. Can you explain this answer?

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This discussion on X Ltd.s profit and loss account for the year ended 31stDecember, 2011 includes the followinginformationDepreciation 84,500Bad Debts 2,500Increase in provision for doubtful debts 22,000Proposed dividend 73,200Retained profit for the year 1,22,000Liability of tax 26,400State what amounts should be transferred to:- (i) Provisions (ii) Reserves (iii) Neither related to provisions nor reserves Prov Res No Prov/Resa)1,21,600 1,22,000 87,000b)95,200 1,22,000 1,13,400c)1,22,000 95,200 Nild)1,22,000 1,21,600 NilCorrect answer is option 'A'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of X Ltd.s profit and loss account for the year ended 31stDecember, 2011 includes the followinginformationDepreciation 84,500Bad Debts 2,500Increase in provision for doubtful debts 22,000Proposed dividend 73,200Retained profit for the year 1,22,000Liability of tax 26,400State what amounts should be transferred to:- (i) Provisions (ii) Reserves (iii) Neither related to provisions nor reserves Prov Res No Prov/Resa)1,21,600 1,22,000 87,000b)95,200 1,22,000 1,13,400c)1,22,000 95,200 Nild)1,22,000 1,21,600 NilCorrect answer is option 'A'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like X Ltd.s profit and loss account for the year ended 31stDecember, 2011 includes the followinginformationDepreciation 84,500Bad Debts 2,500Increase in provision for doubtful debts 22,000Proposed dividend 73,200Retained profit for the year 1,22,000Liability of tax 26,400State what amounts should be transferred to:- (i) Provisions (ii) Reserves (iii) Neither related to provisions nor reserves Prov Res No Prov/Resa)1,21,600 1,22,000 87,000b)95,200 1,22,000 1,13,400c)1,22,000 95,200 Nild)1,22,000 1,21,600 NilCorrect answer is option 'A'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.
This discussion on X Ltd.s profit and loss account for the year ended 31stDecember, 2011 includes the followinginformationDepreciation 84,500Bad Debts 2,500Increase in provision for doubtful debts 22,000Proposed dividend 73,200Retained profit for the year 1,22,000Liability of tax 26,400State what amounts should be transferred to:- (i) Provisions (ii) Reserves (iii) Neither related to provisions nor reserves Prov Res No Prov/Resa)1,21,600 1,22,000 87,000b)95,200 1,22,000 1,13,400c)1,22,000 95,200 Nild)1,22,000 1,21,600 NilCorrect answer is option 'A'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of X Ltd.s profit and loss account for the year ended 31stDecember, 2011 includes the followinginformationDepreciation 84,500Bad Debts 2,500Increase in provision for doubtful debts 22,000Proposed dividend 73,200Retained profit for the year 1,22,000Liability of tax 26,400State what amounts should be transferred to:- (i) Provisions (ii) Reserves (iii) Neither related to provisions nor reserves Prov Res No Prov/Resa)1,21,600 1,22,000 87,000b)95,200 1,22,000 1,13,400c)1,22,000 95,200 Nild)1,22,000 1,21,600 NilCorrect answer is option 'A'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like X Ltd.s profit and loss account for the year ended 31stDecember, 2011 includes the followinginformationDepreciation 84,500Bad Debts 2,500Increase in provision for doubtful debts 22,000Proposed dividend 73,200Retained profit for the year 1,22,000Liability of tax 26,400State what amounts should be transferred to:- (i) Provisions (ii) Reserves (iii) Neither related to provisions nor reserves Prov Res No Prov/Resa)1,21,600 1,22,000 87,000b)95,200 1,22,000 1,13,400c)1,22,000 95,200 Nild)1,22,000 1,21,600 NilCorrect answer is option 'A'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.