An extract of Trial balance from the books of Tahiliani and Sons Enterprises on March 31, 2017 is given below:
`{:("Name of the Account","Debit Amount","Credit Amount"),(,Rs,Rs),("Sundary debtors","50,000",),("Bed debts","6,000",),("Provision for doubtful debts",,"4,000"):}`
Additional Information
• Bad Debts proved bad but not recorded amounted to `Rs.` 2,000
• Provision is to be maintained at `8%` of Debtors.
Give necessary accounting entries for writing off the bad debts and creating the provision for doubtful debts account. Also show the necessary accounts

Explanation

New provision for Bad debts `Rs.` 6,840 profit and loss account (Dr)`Rs.` 7,840