Following are the extracts from a Trial Balance of a business firm as on Mar 31, 2009

Dr. Balance

Cr. Balance

Name of Account

Rs

Rs

Sundry Debtors

1,05,000

Provision for Doubtful Debts

10,000

Provision for Discount on Debtors

1,200

Bad Debts

2,500

Discount

1,000

Additional Information

  1. Additional bad debts: Rs 3,500
  2. Additional discount allowed to debtors Rs 1,500
  3. Provision for bad debts to be maintained @ 10% on debtors
  4. Maintain a provision for discount @ 3% on debtors

You are required to

  1. Pass the necessary journal entries
  2. Prepare the necessary (ledger) accounts
  3. Prepare the final accounts (relating to these items only).