Class 11-Account, Provision for bad debt account solution
1. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
Provision for bad and
doubtful debt account
Particulars Amount Particulars Amount
Step 2:
To Bad debt a/c (old + new)
Or Step 4:
To Provision reversed a/c
(Or To P/L a/c – Balancing figure)
Step 3:
To Balance c/d (Find closing or new
Provision for bad debt-given in additional
information)
xxx
xxx
xxx
Step 1:
By Balance b/d (Find Opening or old
Provision for bad debt- given in cr side of
trial balance)
Step 4:
By Estimated bad debt a/c
(Or By P/L a/c – Balancing figure)
xxx
xxx
xxxx xxxx
Dr. Cr.
Remember: For Bad Debt:
Bad debt (old)- Given in Dr side of trial balance
Bad debt (New/further/additional)- Given in Additional information / Adjustment
Closing or New provision for bad debt: If amount is not given but % is given in AI
Closing or New provision for bad debt: (Debtors – new bad debt) x % =xxx
2. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
3. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
4. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
7.
5. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
a. Journal Entries in the books of ABC Trading
Solution
Date Particulars LF Debit Rs. Credit Rs.
i. Provision for bad & doubtful debt a/c-----------------Dr
To Bad debt or sundry debtors a/c
{Or Bad debt a/c -------------------Dr
To Sundry Debtors a/c}
(Being further bad debt written off)
2,700
2,700
ii. Estimated bad debt a/c--------------------------------- Dr
(Bad debt+ New Provision – old Provision)
To Provision for bad & doubtful debt a/c
(Being estimated bad debt expenses charged)
1480
1480
iii. Profit and Loss a/c--------------------------------- Dr
To Estimated bad a/c
(Being estimated bad debt a/c closed or transfer to P/L a/c)
1480
1480
6. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
7. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
8. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
9. Class 11, Accounting, Reserve and Provision, Prepared by Pralhad Sapkota, Pragati
Secondary School, Hetauda – 9, Makawanpur, Nepal
Assignment
> Complete CW (up to 9)
> Example 2
Thank you