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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?
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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.
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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?
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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?.
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