The amount of new provision will be 2,225/- becuase all transactions already in trial so we will not make any further entry. Just we will calculate 5% of the debtors as new provision.
-- On Tue, Jan 24, 2012 at 12:23 PM, bc110201055 Mehwish Maqsood <bc110201055@vu.edu.pk> wrote:
Respected fellows,Please tell me how can we calculate it.Following information are extracted from books of Mr. XYZ
Particulars
Rs.
Closing value of stock
40,000
Bad Debts (Given in trial balance)
500
Old provisions (Given in trial balance)
700
Sundry Debtors (Given in trial balance)
44,500
Provision for doubtful debts be increases by 5%
What will be the amount of new provision
?
► Rs. 2,225
► Rs. 2,425
► Rs. 1,925
► Rs. 3,025
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