MGT101 Assignment Solution Fall2010

SOLVED by Abr

Question # 1:

1-New provision:

Accounts receivable= Rs. 205000
-Bad Debts = Rs. 5000
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= Rs. 2000000
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New provision = Rs. 2000000 * 5 %
New provision = Rs. 10000

2- amount of Provision for doubtful debts to be appeared in Profit and
Loss Account:
Ali & Sons
Profit and Loss Account
For the year ended Dec 31, 2010


Narration Rs. Rs.
New provision for doubtful debts 10000
+ total Bad debts
( 8000+5000) 12000
22000
- Old provision for doubtful debts 6000
amount of Provision for doubtful debts 16000


3-amount of Sundry debtors to be shown in Balance Sheet

Ali & Sons
Balance sheet
As on 31st December 2010


Assets Rs. Rs.
Current Assets:
Debtors 205000
-Bad debts 5000
-new provision 10000
190000


Question # 2


Debtors control account
Debit side Credit side
Date No. Narrations Dr. Rs. Date No. Narrations Dr. Rs.
1 Bal B/F 25000 4 Discount Allowed 2000
3 Credit Sales 50000 6 Receipts 35000
7 Bad debts 10000
8 Sales return 5000

Bal C/F 23000
Total 75000 Total 75000