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Bad debts Rs. 3,000Provision for bad debts Rs. 3,500It is desired to make a provision of Rs. 4,000 at the end of the year. The amount debited to P & L A/c is :
  • a)
    Rs. 4,000
  • b)
    Rs. 5,000
  • c)
    Rs. 6,500
  • d)
    Rs. 3,500
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Bad debts Rs. 3,000Provision for bad debts Rs. 3,500It is desired to m...
& L account for bad debts would be Rs. 3,500, as this is the amount already provided for in the accounting records. The additional provision of Rs. 500 required to reach the desired amount of Rs. 4,000 would be debited to the balance sheet as a reserve for bad debts.
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Community Answer
Bad debts Rs. 3,000Provision for bad debts Rs. 3,500It is desired to m...
Correct answer is d because bad debts minus old provision plus new provision. . . .3000 - 3500 + 4000 = 3500
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Bad debts Rs. 3,000Provision for bad debts Rs. 3,500It is desired to make a provision of Rs. 4,000 at the end of the year. The amount debited to P & L A/c is :a)Rs. 4,000b)Rs. 5,000c)Rs. 6,500d)Rs. 3,500Correct answer is option 'D'. Can you explain this answer?
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