(b) Bad Debts recovered: R2 700; S - 3600; N=2500. (c) Bad Debts considered doubtful at the end of the year: G3800; H>900: K3 1,000 Debts considered doubtful at the commencement of the year 2016 were either realized or written off as bad debt. Write up the Bad Debts Account and Provision for Doubtful Debts Account for the year ended 31.12.2016. 922 1,700 450 Dr. Bad Debt Account Cr. Date Particulars Date Particulars 2016 ? To Sundry Debtors Ac 1200+300+200) 1,700 2016 Dec 31 By Provision for Doubtful Debts Dr. Provision for Doubtful Debts Account Cr. Date Particulars Date Particulars 2016 Dec.31 To Bad Debt Alc 1,700 2016 Jan 1 By Balance bf 1.500 + 400 + 250) 2.150 To Balance od 800 + 900 + 1,000) 2.700 Dec.31 By Bad Debt Recovery Alc 1.800 By Profit & Loss Alc 4.400 4400 Note: Amount realised from past bad debts should be credited to Provision for Bad and Doubtful Debts Account. Alternatively, it can be credited to Profit and Loss Account. Illustration 21 On January 1, 2016 the Provision for Bad and Doubtful Debts Account of a concern showed a balance of 60,000 and the Debtors amounted to 15,00,000. Out of these, during 2016, Debtors amounting to 10,75,000 paid in full, but the following debts proved bad or doubtful: A 20,000)bad to the full extent; BR 40,000)insolvent, estate expected to pay 50 paise in the rupee; CE 12,000)-realised 33.1/3 % in full settlement. The remaining debts were considered somewhat doubtful on December 31. The following further debts became due during 2016 but outstanding on December 31: DR 20,000) expected to prove totally bad: ER 80,000)-expected to prove 5% bad; FR6,40,000)-expected to prove 4% bad; GR 4,00,000)-expected to prove bad to some extent; H 12,60,000)-expected to prove wholly good. It was decided to write off actual debts and to make reserve of 5% on debts of unknown doubtful nature. Draw up the Provision for Bad and Doubtful Debts Account and show the balance of the account as at December 31,2016