A, B & C are partners sharing profits and losses in the ratio of 2:2:1. B decided to retire on 31st March 2021. On the date of retirement, some of the assets and liabilities appeared in the books as follows- Creditors- ₹70000 Building- ₹100000 Machinery- ₹40000 Stock of raw material- ₹20000 Stock of finished goods- ₹30000 Debtors- ₹20000

How much provision was created if it is agreed that a 5% provision is made for doubtful debts?

₹5000 ₹2000 ₹19000 ₹1000

₹1000

Debtors- ₹20000 Provision= 20000*5/100= ₹1000