Mgt101 Assignment No. 2 solution
Saturday, January 01, 2011 Posted In MGT Edit This1-New provision:
Accounts receivable= Rs. 205000
-Bad Debts = Rs. 5000
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= Rs. 2000000
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New provision = Rs. 2000000 * 5 %
New provision = Rs. 10000
2- amount of Provision for doubtful debts to be appeared in Profit and
Loss Account:
Ali & Sons
Profit and Loss Account
For the year ended Dec 31, 2010
Narration | Rs. | Rs. |
New provision for doubtful debts | 10000 | |
+ total Bad debts ( 8000+5000) | 12000 | |
22000 | ||
- Old provision for doubtful debts | 6000 | |
amount of Provision for doubtful debts | 16000 |
3-amount of Sundry debtors to be shown in Balance Sheet
Ali & Sons
Balance sheet
As on 31st December 2010
Assets | Rs. | Rs. |
Current Assets: | ||
Debtors | 205000 | |
-Bad debts | 5000 | |
-new provision | 10000 | |
190000 |
Question # 2:
Debtors control account | |||||||
Debit side | Credit side | ||||||
Date | No. | Narrations | Dr. Rs. | Date | No. | Narrations | Dr. Rs. |
1 | Bal B/F | 25000 | 4 | Discount Allowed | 2000 | ||
3 | Credit Sales | 50000 | 6 | Receipts | 35000 | ||
7 | Bad debts | 10000 | |||||
8 | Sales return | 5000 | |||||
Bal C/F | 23000 | ||||||
Total | 75000 | Total | 75000 | ||||
Assignment No2 Solution of MGT-101 (Financial Accounting)
Question no1:
Answer:"
i. Calculate new provision?
= Sundry debtors – new bad debts
=205000 – 5000
=200,000
New provision = 200,000*5/100
New provision = Rs.10000
ii. Calculate the amount of provision for doubtful debtors to be appeared in
profit and loss account?
Bad debts = 8000
Add: new bad debts = 5000
Add: new provision =10000
Less: Old provision =(6000)
= 17000
Balance (Rs.17000) is appear in profit and loss account
iii. Calculate the amount of sundry debtors shown in balance sheet?
Debtors = 205000
Less: new bad debts = 5000
Less: new provision =10000
Balance show in B.S = Rs.190000
Question No 2:
Answer:"
Debtor Control Account
Date No Narration Dr. Rs Date No Narration Cr. Rs
Bal b/f 25000 Recept from
Bal b/f 25000 Recept from
Debtors 35000
Credit sales 50000 Discount 2000
Credit sales 50000 Discount 2000
Bad bdebts 10000
Sale Return 5000
closing debtors 23000
75000 75000
75000 75000
