Question
Debtors: Rs. 30,000. Bad debts: Rs. 300, provision for bad debt 5% on debtors, discount on debtors 2%.
Calculate the correct amount of provision for discount on debtors.
Calculate the correct amount of provision for discount on debtors.
Answer: Option C
:
C
Debtors
30,000
Less: Bad Debts
(300)
29,700
Less: Provision for bad debts
(1,485)
(29,700*5%)
28,215
Provision for discount on debtors
564
(28,215*2%)
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:
C
Debtors
30,000
Less: Bad Debts
(300)
29,700
Less: Provision for bad debts
(1,485)
(29,700*5%)
28,215
Provision for discount on debtors
564
(28,215*2%)
Was this answer helpful ?
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