Question

(When Provision for Doubtful Debts is not given in the Trial Balance). Following is the extract form the Trial Balance of Dass as at 31st March, 2019:

Additional Information : Create a Provision for Doutful Debts @5% on Sundry Debtors. Pass neccessary entry and show these items in the Profit and Loss Account and Balance sheet.

Answer 1

It should be noted that the Sundry Debtors Account will not be affected by creating Provision for Doubtful Debts. It means provision does not amount receivable form debtors .