Calculate the provision for Discount on Debtors from the following information.

Sundry debtors = ₹20,000
Bad debts = ₹1,000
Provision for doubtful debts = ₹500
Provision for discount on debtors is 5%.

₹925

The correct answer is option 4- ₹925

Provision for Discount on Debtors is calculated on amount after adjusting these.
Sundry debtors- Bad debts - Provision for doubtful debts
20,000 - 1,000 -500
= 18,500
Provision for discount = 18,500 x 5/100
                                   = ₹925