Provision for Doubtful Debts Double Entry

Iii A claim for 16000 for workmens compensation was admitted. Other items Sales return reserve for discount on accounts payable.

Understand How To Enter The Provision For Bad Debts Transactions Using The Double Entry System Youtube

V Creditors were unrecorded to the extent of 1000.

. Provision for bad and doubtful debts will be increased by 3000. Anonymous What would be the double entry if a specific provision for doubtful debts which was made is paid in the next year. Double Entry Book Keeping Ts Grewal Volume I 2021-2022 Solutions for Class 12 Commerce Accountancy Chapter 5 - Admission Of A Partner.

All non-cash items Depreciation Bad Debts Provision for Doubtful Debts etc. 6000 have been omitted be recorded in the books. General reserve provision for doubtful debts.

Specific Provision for Doubtful Debts Subsequently Paid by. Long term debts Rs3200000 Rs250000 Rs20000 Rs100000 Rs. Iv A provision for bad and doubtful debts is to be created at 5 of debtors.

The solution for this question is as follows. Provision for discount on accounts receivable etc. According to a double-entry system every transaction is recorded in a journal debiting one account and crediting the other for the same amount of money with an explanation.

Enter the email address you signed up with and well email you a reset link. Below is the Calculation of Long term Debts-Long term debts total Debts- Creditors Bills payables- Short term Borrowings Outstanding Exp. Are taken into account.

The following year if you felt the provision needed to be lowered as the potential bad debt was now paid and future debts did not have the same likelihood of going bad then you could cancel. 1480 for accrued income are be shown in the books. 30000 Long term debts Rs.

Calculate total Assets to debt ratio from the following. 1000 are prepaid for insurance. 5000 are outstanding for salaries.

Pass the necessary journal entries prepare the revaluation account and partners capital accounts and show the Balance Sheet after the admission of C. 5 provision be made for doubtful debts on Debtors and a provision of 2 be made on Debtors and Creditors for discount. The difference between the debit side and the credit side is either surplus or deficit for the year concerned and the difference will be transferred to the Capital Fund also called General Fund or Accumulated Fund appearing in Balance Sheet.

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