A provision for doubtful debts is to be created at 5% of debtors. Debtors in the balance sheet are Rs. 60,000. Provision for Doubtful debts to be show - Accountancy MCQ CUET Accountancy 2022 20 July Shift 1 2026 | ExamTest.live

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A provision for doubtful debts is to be created at 5% of debtors. Debtors in the balance sheet are Rs. 60,000. Provision for Doubtful debts to be shown in Revaluation Account:

Solution & Step-by-step Explanation

The value of Debtors is Rs. 60,000.Provision to be created = 5% of 60, 000 = Rs. 3, 000 .This amount will be debited to the Revaluation Account.

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A provision for doubtful debts is to be created at 5% of debtors. Debtors in the balance sheet are Rs. 60,000. Provision for Doubtful debts to be shown in Revaluation Account:

Rs. 1,000

Rs. 2,000

Rs. 3,000

Rs. 1,500

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