[" Debtors "₹2,64,000" .Provision for Doubtful Debts "₹24,000,248,000" of the book debts proved bad."],[" Realisation Account is to be credited with "]

Provision For Bad And Doubtful Debts

Pass Journal entries for following transactions on the dissolution of a firm of partners A and B , after various assets (other than cash ) and outside liabilities have been transferred to Realisation Account ? (i) 'A' took 50% of the stock at a discount of 20 % . Remaining stock was sold at a profit of 30% on cost . (Book value of stock given in the Balance sheet before dissolution was ₹ 4,00,000 ). (ii) Debtors ₹ 2, 64 , 000 . Provision for Doubtful Debts : ₹ 24, 000 , ₹ 48 , 000 of the book debts proved bad . (iii) Building (Book value ₹ 5,00,000) sold for ₹ 8,00,000 through a broker who charged 2 % commission. (iv) Machinery (Book value ₹ 6,00,000) was given to a creditor at a discount of 20% (v) Investments (Book value ₹ 40 , 000) realised at 150 %.

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

X and Y are partners in a shring profits in the ratio of 3 : 2. They admitted Z as a partner for 1/4th share of profits. At the time of admission of Z, Debtors and Provision for Doubtful Debts appeared at RS.76,000 and RS.8,000 respectively. RS.6,000 of the debtors proved bad. A provision of 5% is to be created on Sundry Debtors for doubtful debts. Pass the necessary Journal entries.