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From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor?
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From the following information find the amount to be debited p & L A/c...
Calculation of Provision for Doubtful Debts
To calculate the amount to be debited to the Profit and Loss Account for the period ending 31-03-2014, we need to analyze the provided information and follow these steps:
1. Existing Provision for Doubtful Debts
- Existing Provision (as of 01-04-2013): Rs. 800
2. Bad Debts Written Off
- Bad Debts to be written off during the period: Rs. 2,000
3. Debtors as of 31-03-2014
- Total Debtors: Rs. 40,000
4. New Provision Calculation
- Provision for Doubtful Debts to be created at 5% on Debtors:
- Calculation: 5% of Rs. 40,000 = Rs. 2,000
5. Adjustments Needed
- Total Provision required after adjustments:
- New Provision (Rs. 2,000) - Existing Provision (Rs. 800) = Rs. 1,200 additional provision required.
6. Amount to be Debited to P&L Account
- The total amount to be debited to the Profit and Loss Account will include the bad debts written off and the additional provision required:
- Calculation: Bad Debts Written Off (Rs. 2,000) + Additional Provision Required (Rs. 1,200) = Rs. 3,200
Conclusion
Thus, the amount to be debited to the Profit and Loss Account for the period ending 31-03-2014 is Rs. 3,200. This amount reflects both the bad debts that are being recognized and the necessary adjustments to the allowance for doubtful debts, ensuring a more accurate representation of potential credit losses in the financial statements.
To calculate the amount to be debited to the Profit and Loss Account for the period ending 31-03-2014, we need to analyze the provided information and follow these steps:
1. Existing Provision for Doubtful Debts
- Existing Provision (as of 01-04-2013): Rs. 800
2. Bad Debts Written Off
- Bad Debts to be written off during the period: Rs. 2,000
3. Debtors as of 31-03-2014
- Total Debtors: Rs. 40,000
4. New Provision Calculation
- Provision for Doubtful Debts to be created at 5% on Debtors:
- Calculation: 5% of Rs. 40,000 = Rs. 2,000
5. Adjustments Needed
- Total Provision required after adjustments:
- New Provision (Rs. 2,000) - Existing Provision (Rs. 800) = Rs. 1,200 additional provision required.
6. Amount to be Debited to P&L Account
- The total amount to be debited to the Profit and Loss Account will include the bad debts written off and the additional provision required:
- Calculation: Bad Debts Written Off (Rs. 2,000) + Additional Provision Required (Rs. 1,200) = Rs. 3,200
Conclusion
Thus, the amount to be debited to the Profit and Loss Account for the period ending 31-03-2014 is Rs. 3,200. This amount reflects both the bad debts that are being recognized and the necessary adjustments to the allowance for doubtful debts, ensuring a more accurate representation of potential credit losses in the financial statements.
Community Answer
From the following information find the amount to be debited p & L A/c...
3100
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From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor?
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From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor?.
From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor?.
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From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor?, a detailed solution for From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor? has been provided alongside types of From the following information find the amount to be debited p & L A/c for the period ending 31-03-2014. Provision for doubtful debts - Rs. 800 (on 01-04-2013) Debtors on 31-03-2014 - Rs. 40,000 Bad debts - Rs. 2,000 Bad debts to be written off and provision for doubtful debts is to be created @ 5% on debtor? theory, EduRev gives you an
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