Quote:
Originally Posted by Rohail Khan
Year 1990
Summary of entries..
Year 1990
1.
Dr profit and loss a/c 500
Cr bad debt reserve a/c 500
Year 1991
2.
Dr profit and loss a/c 400
Cr bad debt reserve a/c 400
3. entry for discount reserve.
Dr profit and loss a/c 650
Cr reserves for discount a/c 650.
Provision for B/D A/c....1000
to Bad debt A/c........................1000
and final entry is...
Profit and loss account........1250
Provision for bad debts.........................1250
(ye entry mein provision+ discount add kia gaya hai. or yahi mujhe samaj nahi araha ku.
regards..
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Now these are the right entries as per guide.