Question - From the following details how much should be charged to profit and loss A/c as debs 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Debtors includes Rs. 5,000 due by the proprietor for the goods withdrawn for self-use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.