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A firm maintains a provision for bad debts at 5% and a provision for dist at 2% on total debtor Balance on 1.4.2003 provision for bad and doubtful debt ₹4500, provision for dist on debtor ₹4000.Total debtor on 31.3.2004 were 1,00,000 after writing off bad debts of ₹2500 and allowing for dist of ₹3000. The amt of provision for bad debts and provision for dist on debtor chargeable to a) ₹4500,₹1900 b) ₹5000,₹1900 c) ₹2500,₹990 d) ₹5000,2500?
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A firm maintains a provision for bad debts at 5% and a provision for d...
Calculation of Provision for Bad Debts:

Provision for bad debts is maintained at 5% of the total debtor balance. On 1.4.2003, the provision for bad and doubtful debts was ₹4500. To calculate the provision for bad debts chargeable, we need to consider the total debtor balance on 31.3.2004 and the amount of bad debts written off during the year.

Given:
- Provision for bad and doubtful debts on 1.4.2003 = ₹4500
- Total debtor balance on 31.3.2004 = ₹100,000
- Bad debts written off during the year = ₹2500

Step 1:
Calculate the bad debts during the year by subtracting the total debtor balance on 31.3.2004 from the total debtor balance on 1.4.2003.

Bad Debts = Total Debtor Balance on 1.4.2003 - Total Debtor Balance on 31.3.2004
Bad Debts = ₹100,000 - ₹100,000
Bad Debts = ₹0

Step 2:
Calculate the provision for bad debts chargeable by considering the bad debts during the year.

Provision for Bad Debts Chargeable = Provision for Bad and Doubtful Debts on 1.4.2003 - Bad Debts during the year
Provision for Bad Debts Chargeable = ₹4500 - ₹0
Provision for Bad Debts Chargeable = ₹4500

Therefore, the amount of provision for bad debts chargeable is ₹4500.

Calculation of Provision for Discount on Debtors:

Provision for discount on debtors is maintained at 2% of the total debtor balance. On 1.4.2003, the provision for discount on debtors was ₹4000. To calculate the provision for discount on debtors chargeable, we need to consider the total debtor balance on 31.3.2004 and the discount allowed during the year.

Given:
- Provision for discount on debtors on 1.4.2003 = ₹4000
- Total debtor balance on 31.3.2004 = ₹100,000
- Discount allowed during the year = ₹3000

Step 1:
Calculate the discount allowed during the year by subtracting the total debtor balance on 31.3.2004 from the total debtor balance on 1.4.2003.

Discount Allowed = Total Debtor Balance on 1.4.2003 - Total Debtor Balance on 31.3.2004
Discount Allowed = ₹100,000 - ₹100,000
Discount Allowed = ₹0

Step 2:
Calculate the provision for discount on debtors chargeable by considering the discount allowed during the year.

Provision for Discount on Debtors Chargeable = Provision for Discount on Debtors on 1.4.2003 - Discount Allowed during the year
Provision for Discount on Debtors Chargeable = ₹4000 - ₹0
Provision for Discount on Debtors Chargeable = ₹4000

Therefore, the amount of provision for discount on debtors chargeable is ₹4000.

Summary:

The amount of provision for bad debts chargeable is ₹4500
Community Answer
A firm maintains a provision for bad debts at 5% and a provision for d...
100000×5% is 5000
100000-5000=95000×2% is 1900
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A firm maintains a provision for bad debts at 5% and a provision for dist at 2% on total debtor Balance on 1.4.2003 provision for bad and doubtful debt ₹4500, provision for dist on debtor ₹4000.Total debtor on 31.3.2004 were 1,00,000 after writing off bad debts of ₹2500 and allowing for dist of ₹3000. The amt of provision for bad debts and provision for dist on debtor chargeable to a) ₹4500,₹1900 b) ₹5000,₹1900 c) ₹2500,₹990 d) ₹5000,2500?
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A firm maintains a provision for bad debts at 5% and a provision for dist at 2% on total debtor Balance on 1.4.2003 provision for bad and doubtful debt ₹4500, provision for dist on debtor ₹4000.Total debtor on 31.3.2004 were 1,00,000 after writing off bad debts of ₹2500 and allowing for dist of ₹3000. The amt of provision for bad debts and provision for dist on debtor chargeable to a) ₹4500,₹1900 b) ₹5000,₹1900 c) ₹2500,₹990 d) ₹5000,2500? 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 A firm maintains a provision for bad debts at 5% and a provision for dist at 2% on total debtor Balance on 1.4.2003 provision for bad and doubtful debt ₹4500, provision for dist on debtor ₹4000.Total debtor on 31.3.2004 were 1,00,000 after writing off bad debts of ₹2500 and allowing for dist of ₹3000. The amt of provision for bad debts and provision for dist on debtor chargeable to a) ₹4500,₹1900 b) ₹5000,₹1900 c) ₹2500,₹990 d) ₹5000,2500? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A firm maintains a provision for bad debts at 5% and a provision for dist at 2% on total debtor Balance on 1.4.2003 provision for bad and doubtful debt ₹4500, provision for dist on debtor ₹4000.Total debtor on 31.3.2004 were 1,00,000 after writing off bad debts of ₹2500 and allowing for dist of ₹3000. The amt of provision for bad debts and provision for dist on debtor chargeable to a) ₹4500,₹1900 b) ₹5000,₹1900 c) ₹2500,₹990 d) ₹5000,2500?.
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