Question: From the following details how mush sshould be charged to profit and loss A/C as bad debts during the current year
Provisions for bad debts A/C as on 1-4-2006 Rs. 22,000
Actual bad debts during 2006-07 Rs. 20,000
Debtors balance as on 31-3-2007 Rs. 80,000
Debtors includes Rs, 5,000 due by the proprietor for the goods withdrawn for self-use. A credit sales of Rs. 4,500 was erroneously recorded in the sales day book as Rs. 5,400.
Provisions for bad debts to be made@ 5% of total debtors
a) Rs. 2,100
b) Rs. 1,705
c) Rs. 1,890
d) Rs. 1,600