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Extracts of Trial Balance as at 31st March, 2017: Dr. (₹) Cr. (₹) Sundry Debtors (including Dewan for dishonoured bill of ₹ 20,000) 4,80,000 – Provision for Doubtful Debts – 24,000 Bad Debts 10,000 – Adjustments:(i) 34th of Dewan's bill is irrecoverable.(ii) Create a provision of 6% on Sundry Debtors.Show the effect on Profit and Loss Account and Balance Sheet.

Answer» Extracts of Trial Balance as at 31st March, 2017:























Dr.

(₹)
Cr.

(₹)
Sundry Debtors (including Dewan for dishonoured bill of ₹ 20,000) 4,80,000
Provision for Doubtful Debts 24,000
Bad Debts 10,000



Adjustments:

(i) 34th of Dewan's bill is irrecoverable.

(ii) Create a provision of 6% on Sundry Debtors.

Show the effect on Profit and Loss Account and Balance Sheet.


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