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?

₹17,000 ₹10,000 ₹7,000 ₹27,000

₹7,000

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.