From the following particulars prepare (1) Reserve the Doubtful Debts A/c; (2) Reserve for Discount on Debtors and (3) Reserve for Discount on Creditors for both the years:
- Balance as on Jan 1, 2008; Reserve for doubtful debts Rs 3,000; Reserve for Discount on debtors Rs 1,500; Reserve for discount on creditors Rs 1,200.
- Total debtors as on Dec 31, 2008 were Rs 75,000 after writing off bad debts Rs 1,800 and allowing discount Rs 600.
- Total debtors as on Dec 31, 2009 were Rs 60,000 after writing off bad debts Rs 1,800 and allowing discount Rs 150.
- Total creditors as on Dec 31, 2008 and 2000 were Rs 45,000 and Rs 30,000, respectively.
- Discounts received during the years were Rs 900 and Rs 150, respectively.
- Provide 5% as Reserve for Doubtful Debts; 2½12; % as Reserve for Discount on Debtors and 2% as Reserve for Discount on Creditors.