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Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?
- a)P & L A/c Dr. 100
To Provision for Doubtful debts 100 - b)Provision for Doubtful debts Dr. 100
To P&L A/c 100 - c)P & L A/c Dr. 900
To Provision for Doubtful debts 900 - d)No entry will be passed.
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-0...
The journal entry to be passed on 31.3.09 will be:
Debit: Provision for Bad Debts - Rs. 900 (90,000 * 1%)
Credit: Bad Debts written off - Rs. 900
Explanation:
Since there were no bad debts during the year 2008-09, the provision for bad debts remains unchanged at Rs. 1,000. However, as per the given information, the debtors as on 31.3.09 were Rs. 90,000. Therefore, a provision for bad debts of 1% on the debtors is required.
Journal Entry:
The provision for bad debts is debited by Rs. 900 (90,000 * 1%), indicating an increase in the provision amount.
The bad debts written off account is credited by Rs. 900, indicating the amount of bad debts recorded as an expense.
This entry ensures that the provision for bad debts is adjusted to reflect the required amount based on the debtors' balance as on 31.3.09.
Debit: Provision for Bad Debts - Rs. 900 (90,000 * 1%)
Credit: Bad Debts written off - Rs. 900
Explanation:
Since there were no bad debts during the year 2008-09, the provision for bad debts remains unchanged at Rs. 1,000. However, as per the given information, the debtors as on 31.3.09 were Rs. 90,000. Therefore, a provision for bad debts of 1% on the debtors is required.
Journal Entry:
The provision for bad debts is debited by Rs. 900 (90,000 * 1%), indicating an increase in the provision amount.
The bad debts written off account is credited by Rs. 900, indicating the amount of bad debts recorded as an expense.
This entry ensures that the provision for bad debts is adjusted to reflect the required amount based on the debtors' balance as on 31.3.09.
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Community Answer
Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-0...
Because we already have PBD of 1000rs. but we only 1% of 90000 i.e. 900rs. which means we need to reduce the balance of PBD by 100 rs
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Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer?
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Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer?.
Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer?.
Solutions for Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Provision for bad-debts as on 1.4.08 Rs. 1,000, during the year 2008-09 there were no bad-debts and debtors as on 31.3.09 were Rs. 90,000. Provision for bad-debts required @ 1% which of the following journal Entry will be passed on 31.3.09?a)P & L A/c Dr. 100To Provision for Doubtful debts 100b)Provision for Doubtful debts Dr. 100To P&L A/c 100c)P & L A/c Dr. 900To Provision for Doubtful debts 900d)No entry will be passed.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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