Question
A business firm has the following details as of
31.03.2023 :  •Additional bad debts during the year = ₹ 25,000 •The firm follows a policy of maintaining 10% provision on outstanding trade receivables. What will be the total amount affected in the Profit and Loss Account due to bad debts and provision adjustments?Solution
Calculation: 1.Total Bad Debts: oExisting bad debts = ₹ 6,000 oAdditional bad debts = ₹ 25,000 oTotal bad debts = ₹ 6,000 + ₹ 25,000 = ₹ 31,000 2.Provision Calculation: oNet receivables after bad debts = ₹ 3,00,000 - ₹ 31,000 = ₹ 2,69,000 oNew provision (10% of ₹ 2,69,000) = ₹ 26,900 oOld provision = ₹ 18,000 oIncrease in provision = ₹ 26,900 - ₹ 18,000 = ₹ 8,900 3.Total impact on P&L: oTotal bad debts (₹ 31,000) + Increase in provision (₹ 8,900) = ₹ 39,900
The Buddha got enlightenment under which of the following tree?
Which of the following is a feature of the Indian Constitution?
_________ Fundamental Duties were added in Part-IV of the Constitution under Article 51-A in the year 1976 through the 42nd Constitutional Amendment.
Which of the following words was added to the Preamble of the Constitution of India by 42nd amendment of the Constitution?
Which of the following statements about forests is INCORRECT?
Small amounts of iodine are necessary in our diet to:
Consider the following statements about the use of behavioural parameters by GSTN to enhance voluntary compliance with reference to GST (Goods and Servi...
The Lunar Polar Exploration Mission (LUPEX) is a planned joint lunar mission by the Indian Space Research Organisation (ISRO) and which of the followin...
What is the (approximate) amount of financial assistance approved by International Monetary Fund for Sri Lanka in March 2023 to help the country overcom...
Relevant for Exams:
