There are bad debts of ₹17,000. How much bad debt is debited to the revaluation account if Debtors after provision for doubtful debts (10,000) is ₹1,00,000?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹7000.
Provision= ₹10,000
Bad debts= ₹17,000
Loss for the firm = 17,000-10,000
= ₹7,000
It is debited to revaluation account.