A bad debt of `1,560 had not been written off and provision for doubtful debts should have been maintained at 10% of Trade receivables which are shown in the trial balance at `23,390 with a credit provision for bad debts at `2,320

1. Here 1,560 had not been written off , thus we are writing it off crediting trade receivables a/c , which was not done earlier. 2.And provision for doubtful debts should have been maintained @ 10% of trail balance 23,390 , but not maintained instead credit provision for bad debts was maintained 2320. Here we are first ascertaining the right trail balance by subtracting 270 and 1560 we get 21560 . 10% of 21560 = 2156 which is the right provision for doubtful debts that is to be debited. Instead of debiting we have credited it with wrong account , Then why are we subtracting 1560 from the 2,320 provision for bad debts , and 720 from 2156 ? Even video couldn't help me completely , please try to make things clear, is this the right approach to think or am I missing on something so i should go reassure my basics ? Video Details ------------- Accounting - CA Foundation (New) Rectification of Errors #21. Illustration W&H

Pranav Anand

CA Inter

★ 0

19-Sep-25 18:23

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