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Accountancy
As on balance sheet date , we have a total debtors of Rs.5,00,000. We created a general provision of 1% on provision for doubtful debts.After balance sheet date but before the board approval, Mr.B debtor of Rs.1,00,000 becomes insolvent. Ans. I think it is non adjusting event , becoz There is no condition that Mr.B will become insolvent is existing at the balance sheet date. General provision of 1%does not mean there is a condition existing at the balance sheet date. Is my understanding correct!
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