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Mgt101 Assignment No. 2 solution

Saturday, January 01, 2011 Posted In Edit This

1-New provision:

Accounts receivable= Rs. 205000
-Bad Debts               = Rs. 5000
                                         ------------------
                                         = Rs. 2000000
                                         ------------------
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
                                              Debtors       35000


Credit sales 50000              Discount        2000
                                               Bad bdebts 10000
                                              Sale Return  5000                                   
                                             closing debtors  23000
             75000                                                 75000

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