Bad Debts

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

From the following Trial Balance of Shradha as on 31st March, 2019, prepare Trading and Profit and Loss Account and Balance Sheet: Adjustments : (i) Closing Stock Rs 64,000. (ii) Wages outstanding Rs 2,400. (iii) Bad Debts Rs 600. (iv) Provision for Doubtful Debts to be 5%. (v) Rent is paid for 11 months. (vi) Insurance premium is paid per annum, ended 31st May, 2019. (vii) Loan form the bank was taken on 1st October, 2018. (viii) Provides Depreciation on machinary @ 10% and on Furniture @ 5%.

Following Balances were extracted from the books of Vijay on 31st March, 2019: Prepare Trading and Profit and Loss Account for the year ended 31st March, 2019 and Balance Sheet as at that date after giving effect to the following adjustments: (i) Stock as on 31st March, 2019 was valued at Rs 2,30,000. (ii) Write off further Rs 1,800 as Bad Debts and maintain the Provision for Doubtful Debts at 5% . (iii) Depreciate Machinery at 10% . (iv) Provide Rs 7,000 as outstanding interest on loan.