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Commerce · Q421

Accounting

Graduate and Post Graduate · Commerce · question 421

Q421

Which of the following formula is correct to calculate provision on debtors to be transferred to Profit and Loss Account?

A.
Bad Debts + New Provision - Old Provision
B.
Provision on Debtors + New Provision + Bad Debts - Further Bad Debts
C.
Bad Debts + New Bad Debts + New Provision - Old Provision
Answer
D.
New Provision on Debtors + Old Provision made for Bad Debts

Answer: Option C

Solution

Answer: Option C
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