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Final accounts
Accountancy
Why my balance is not match
Answers (6)
Best Answer
When any item showed in trial balance(TB) then the double accounting is done. So when baddebts came in TB then this entry is passed earlier in books Baddebts a/c dr. xxx To debtors a/c xxx So baddebt is already deducted from debtors and if we make provision then we have to find remaining or adjusted debtors. For e.g. debtors in TB 10,000 Baddebts in TB 2,000 Provision for baddebts in TB 200 Adjustments:1.further baddebts 500 2.B/R dishonour 6000 3.A debtor who paid his due amount without informing us in bank 5000 We need to create 10%p.a. provision for baddebts. Ans. Debtor in TB. 10,000 less further baddebts. 500 Add B/R dishonour. 6,000 less bank. 5,000 (amount paid by debtor)----------- Remaining debtors. 10,500 Less Provision 10% 1,050 Add old provision. 0 ------------ Debtor go to bal.sheet. 9,450 Calculation of old provision 500 Less baddebts of TB.(2000) 500(adjusted) --------- Remaining prov. balance 0/nil Amo. transfer to p&l: New provision. 1,050 Add further or TB baddebts. 2,000 {(2,000-500)+500} ---------- 3,050
CA Suraj Lakhotia Admin
Ok
Sir In above question bad debts was given twice that is in trail balance and also in adjustment then in that case present year bad debts should be deducted from Sunday debtors Is this right sir if I am wrong please suggest me sir Because it was just confusing
