Following is the extract of a Balance Sheet (relating to this particular item Debtors and Bad Debt) as on Mar 31, 2009:
|
Dr. Balance |
Cr. Balance |
|
|
Rs |
Rs |
|
|
Sundry Debtors |
1,10,000 |
|
|
Bad Debts |
7,500 |
Additional information
- After preparing Trial Balance, it is surfaced that one Mr. Yadav has become insolvent and the entire amount of Rs 10,000 was not recoverable from him.
- It is desired to make a provision of 5% on debtors. Write up the relevant adjustment entry and prepare the final accounts.