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Dr. Sundry Debtors Account Cr. Date Particulars Date Particulars 2015 2016 Apr. 1 To Balance bld 98,412 ? By Discount Allowed Alc 8,324 2016 7
Dr. Sundry Debtors Account Cr. Date Particulars Date Particulars 2015 2016 Apr. 1 To Balance bld 98,412 ? By Discount Allowed Alc 8,324 2016 7 By Bank Alc 8,76,940 ? To Sales Alc 9,42,520 ? By Returns Inwards Alc 30,510 Mar. 31 To Bank A/c (Cheque dishonoured) 3,528 ? By Bad Debts Ac 8,536 Mar. 31 By Balance od 1,20,150 10,44,460 10,44,460 Dr. Provision for Doubtful Debts Account Cr. Date Particulars Date Particulars .2016 2015 Mar. 31 To Bad Debts Alc 8,536 Apr. 1 By Balance b/d 6,876 To Balance dd (10% on * 1,20,150) 12,015 2016 Mar. 31 By Profit and Loss Alc (Balancing figure) 13,675 20,551 20,551 Tutorial Notes: (1) Cheque received from the receiver of Naresh will be credited to Bad Debt Recovery Account. This account will be closed by transferring to Profit and Loss Account 9202) Carriage wand has nothing to do with sundry Debtors Acoum. Tilustration 10 Because of their doubtful nature, Sri A K Sinha instructed his accountants to make a specific provision in the accounts for the year ended 31st December, 2015 against the following debts : Roy -- *280; Das 360: Ghosh - 240: Saha *2,040. He also instructed that a general provision of 5% for doubtful debts should be created on the other debtors, which at 31st December, 2015 amounted to * 80,000. No further business transactions were entered into with any of these debtors during the year ended 31st December, 2016 but an amount of 90 was received from Roy's trustee in bankruptcy by way of a first dividend; a first and final dividend of 3 700 was received from the liquidator of Saha and Ghosh paid his debt in full. A further debt of 950 due from Sarkar proved to be bad. On 31st December, 2016 Sri A K Sinha instructured his accountants to maintain the provision existing against Das's debt and to provide for the balance due from Roy, and to make further provision for doubtful debts due from Bose ? 190 and Ganguli + 150. The other debtors amounted to * 75,000 and the accountants were instructed to make the provision for doubtful debts equal to 5% of these debts. Prepare Bad Debts Account and Provision for Doubtful Debts Account
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