Mgt101 Assignment No:1

Question No: 1

A/R                                = Rs. 205000

-          Bad debts           = Rs. 50000

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1.                                 Rs.  200000

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New Provision is = Rs. 200000 * 5%

= Rs. 10000

Provision for doubtful debts

Ali & Sons

Profit and loss account

For the month ended Dec 31, 2010

Des	Amount	Amunt
New provision for doubtful debts	10000
Total bad debts 8000+5000	13000
total		23000
-          Old provision		6000
Amount for provision of doubtful is		15000

Amount of sundry debtors will be shown as

Ali & sons

Balance Sheet

As on 31^st  December 2010

Current Assets
Total Debtors	205000
-          Bad debts	5000
-          New Provision	10000
		190000

Question no:2

Debtors Control Accounts

Date	Narration	Dr	Date	Narration	Cr
	Balance b/f	25000		Receive from debtors	35000
	Credit Sale	25000		Discount	2000
				Bad debts	10000
				Sale return	5000
				Closing balance of debtors	23000
		75000			75000

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