MGT 101 Assignment#2

MGT 101 Assignment#2:

Question # 1:

1-New provision:

Accounts receivable= Rs. 205000

-Bad Debts               = Rs. 5000

                                         ------------------

                                         = Rs. 2000000

                                         ------------------

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)	13000
		23000
- Old provision for doubtful debts		6000
amount of Provision for doubtful debts		17000

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

Ali & Sons

Balance sheet

As on 31^st 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