Practicing Success
In a partnership firm on the revaluation of assets, there are debtors of ₹45000 and a provision of doubtful debts of ₹5000 already exists. Debtors of ₹2000 will be written off completely and a provision of 5% on debtors for bad and doubtful debts will be maintained. Pass the journal entry according to revaluation A/c. |
Provision for doubtful debts Dr... ₹3000 Revaluation A/c Dr... ₹850 Provision for doubtful debts Dr... ₹850 Provision for doubtful debts Dr... ₹2150 |
Provision for doubtful debts Dr... ₹850 |
Bad debts = 2000 |