CA Foundation Exam > CA Foundation Questions > On 1st April, 2014 M/s Omega Bros. had a prov...
Start Learning for Free
On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss?
Most Upvoted Answer
On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs...
And Loss Account will be:
First, we need to calculate the required provision for bad debts as per the given rate:
5% of Trade Receivables = 5% of Rs.5,50,000 = Rs.27,500
Now, we need to adjust the existing provision for bad debts with this amount:
New provision = Existing provision + Additional provision - Amount written off
New provision = Rs.15,000 + Rs.27,500 - Rs.35,000
New provision = Rs.7,500 (since we cannot have negative provision)
So, the amount to be debited to Profit and Loss Account will be:
Bad debts written off = Rs.35,000
Less: Amount already provided for = Rs.15,000
Less: Additional provision made = Rs.7,500
Amount to be debited to P&L Account = Rs.12,500.
First, we need to calculate the required provision for bad debts as per the given rate:
5% of Trade Receivables = 5% of Rs.5,50,000 = Rs.27,500
Now, we need to adjust the existing provision for bad debts with this amount:
New provision = Existing provision + Additional provision - Amount written off
New provision = Rs.15,000 + Rs.27,500 - Rs.35,000
New provision = Rs.7,500 (since we cannot have negative provision)
So, the amount to be debited to Profit and Loss Account will be:
Bad debts written off = Rs.35,000
Less: Amount already provided for = Rs.15,000
Less: Additional provision made = Rs.7,500
Amount to be debited to P&L Account = Rs.12,500.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss?
Question Description
On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? 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 On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss?.
On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? 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 On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss?.
Solutions for On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? defined & explained in the simplest way possible. Besides giving the explanation of
On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss?, a detailed solution for On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? has been provided alongside types of On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? theory, EduRev gives you an
ample number of questions to practice On 1st April, 2014 M/s Omega Bros. had a provision for bad debts of Rs.15,000. It was desired to maintain the provision for bad debts @ 5% on Trade Receivables which stood at Rs.5,50,000. Bad debts of Rs.35,000 were not written off. The amount of bad debt to be debited to Profit & Loss? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup