An extract of Trial Balance as on Mar 31, 2009:

Account

Dr. Balance Rs

Cr. Balance Rs

Sundry Debtors

1,05,800

Bad Debts

3,200

Discount

1,500

Additional Information

  1. Create a provision for doubtful debts @ 10% on debtors.
  2. Create a provision of discount on debtors @ 3% on debtors.
  3. Additional discount given to debtors Rs 5,800.

Pass necessary Journal entries and make necessary ledger accounts.