Friday, March 29, 2024
03:39 PM (GMT +5)

Go Back   CSS Forums > CSS Optional subjects > Group I > Accounting & Auditing

Reply Share Thread: Submit Thread to Facebook Facebook     Submit Thread to Twitter Twitter     Submit Thread to Google+ Google+    
 
LinkBack Thread Tools Search this Thread
  #1  
Old Monday, June 04, 2012
ouneeb's Avatar
Senior Member
 
Join Date: Aug 2007
Location: Sargodha
Posts: 316
Thanks: 151
Thanked 102 Times in 81 Posts
ouneeb is on a distinguished road
Default Provision for doubtful debts

ASA
just started final accounts and i am facing some problems if any person can help in this regard i would be grateful
the problem is
sundry debtors=1,41,000
provision for b.debts=6000


adjustments
bad debts to be written off =3000
provisions are to be increased by 5%

journal entries
1.b.debts 3000
acc rec 3000
2.b.debts 6900
pro for bad debts 6900
t accounts
bad debts
----------------------------------------
A\R 3000|income statement 9900
provision 6900|
|

provision for D.D
----------------------------------------
|bal 6000
bal c,f 12900 |increase in provision 6900

-----------------------------------------
profit and loss account
rs 9900 will be shown in p & l acc on the debit side (new + b.debts - old provisions)
and amount of 6900 + 3000 will be deducted from debtors from balance sheet


is it right or wrong
Reply With Quote
  #2  
Old Monday, June 04, 2012
Junior Member
 
Join Date: Apr 2012
Location: Islamabad
Posts: 5
Thanks: 4
Thanked 0 Times in 0 Posts
sunnysaim is on a distinguished road
Default My calculation

Provision for doubtful accounts
W/o 3000 bf 6000

c/f 6300 IS charge3300
9300 9300


1. Dr. Provision for doubtful accounts 3000
Cr. Accounts Receivables 3000

2. Dr. Bad debt Exp 3300
Cr. Provision for doubtful accounts 3300


Accounts receivables 141000
- w/o (3000)
- Provision (6300)

B/S fig 131700
Reply With Quote
  #3  
Old Tuesday, June 05, 2012
ouneeb's Avatar
Senior Member
 
Join Date: Aug 2007
Location: Sargodha
Posts: 316
Thanks: 151
Thanked 102 Times in 81 Posts
ouneeb is on a distinguished road
Default

@sunny saim
3000 were to be written off and the correct entry would be
dr. bad debts 3000
ce. Acc rec 3000

instead of

1. Dr. Provision for doubtful accounts 3000
Cr. Accounts Receivables 3000

and where did u get 3300?
Reply With Quote
  #4  
Old Wednesday, June 06, 2012
Junior Member
 
Join Date: Apr 2012
Location: Islamabad
Posts: 5
Thanks: 4
Thanked 0 Times in 0 Posts
sunnysaim is on a distinguished road
Default

Dear Brother,

Some companies maintain provision/allowance a/c and some do not. The entries you have made would have been correct if those were of the one's not maintaining the provision a/c.

But whan provision account is maintained you will do the following:

0. Make a T account.
1. Op bal of provision is Cr. 6000
2. Bad debts W/o Dr. 3000
3. new Provision (6000*1.05) Dr. 6300 which will be the c/f figure.
4. the balancing fig is Cr. 3300 (which will be charged to IS as Bad debts)

I hope this makes you understand.
__________________
The only thing necessary for the triumph of evil is for good men to do nothing.
Reply With Quote
  #5  
Old Wednesday, June 06, 2012
omarhanif's Avatar
Senior Member
 
Join Date: Jul 2011
Location: :: The World of Wonder ::
Posts: 115
Thanks: 71
Thanked 265 Times in 94 Posts
omarhanif will become famous soon enough
Lightbulb

Yes, this seems right.

Are you a professional accountant?
__________________
“A Momin does not taunt, does not curse and reproach, does not indulge in obscene talking and obscene acts.” [Tirmidhi]
Reply With Quote
  #6  
Old Wednesday, June 06, 2012
ouneeb's Avatar
Senior Member
 
Join Date: Aug 2007
Location: Sargodha
Posts: 316
Thanks: 151
Thanked 102 Times in 81 Posts
ouneeb is on a distinguished road
Default

@sunny saim
so how to know what is right and what to do
actually this question is from sohail afzal book (b.com I) final accounts question 22 i think so. what is the correct answer???both of these are correct?

any other member can help me solve the problem?

Last edited by Shooting Star; Friday, June 08, 2012 at 04:18 PM. Reason: merged
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Defered Tax & Current Tax free thinker Economics 2 Wednesday, February 20, 2019 01:57 PM
Asma Jilani ---- Vs---- Govt. of the Punjab sajidnuml Constitutional Law 5 Saturday, November 11, 2017 06:00 PM
All about Pakistan Muhammad Adnan General Knowledge, Quizzes, IQ Tests 78 Wednesday, May 16, 2012 09:50 PM
Need help: Constitution's questions rqabutt Constitutional Law 11 Monday, February 07, 2011 11:06 PM
Report of Technical Commitee on Water Resources Yasir Hayat Khan General Knowledge, Quizzes, IQ Tests 0 Monday, January 16, 2006 02:53 AM


CSS Forum on Facebook Follow CSS Forum on Twitter

Disclaimer: All messages made available as part of this discussion group (including any bulletin boards and chat rooms) and any opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and not of CSSForum.com.pk (unless CSSForum.com.pk is specifically identified as the author of the message). The fact that a particular message is posted on or transmitted using this web site does not mean that CSSForum has endorsed that message in any way or verified the accuracy, completeness or usefulness of any message. We encourage visitors to the forum to report any objectionable message in site feedback. This forum is not monitored 24/7.

Sponsors: ArgusVision   vBulletin, Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.