Mgt101 Assignment No. 2 solution

Assignment No2 Solution of MGT-101 (Financial Accounting)

 

Question no1:

Answer:"

 

i. Calculate new provision?

= Sundry debtors – new bad debts

=205000 – 5000

=200,000

New provision = 200,000*5/100

New provision = Rs.10000

ii. Calculate the amount of provision for doubtful debtors to be appeared in

profit and loss account?

Bad debts = 8000

Add: new bad debts = 5000

Add: new provision =10000

Less: Old provision =(6000)

= 17000

 

Balance (Rs.17000) is appear in profit and loss account

iii. Calculate the amount of sundry debtors shown in balance sheet?

Debtors = 205000

Less: new bad debts = 5000

Less: new provision =10000

Balance show in B.S = Rs.190000

 

Question No 2:

Answer:"

Debtor Control Account

Date   No       Narration      Dr. Rs                        Date      No       Narration                  Cr. Rs

 

Bal b/f            25000                                                 Recept fro

                                                                                  Debtors                     35000

Credit sales 50000                                                  Discount                   2000

                                                                                 Bad bdebts              10000

Sale Return              5000

Closing debtors      23000

75000                                                                                     75000