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    Question

    Following is the trial balance of a firm as on

    31.03.2022: Additional discount allowed to debtors during the year is ₹20,000. The firm has a policy of maintaining a provision for discount to debtors equal to 10% of the Trade Receivables' balances. Total amount to be charged to Profit and Loss Account (for the year ending 31.03.2022) for discount allowed and provision for discount created will be:
    A ₹25,000 Correct Answer Incorrect Answer
    B ₹13,000 Correct Answer Incorrect Answer
    C ₹ 9,000 Correct Answer Incorrect Answer
    D ₹33,000 Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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