Sundry debtor on 31st March ,2005 are Rs 1,05,000.Further bad debts are Rs 5,000,sale return not recorded in the books Rs 10000 .Old provision for bad dabts is Rs 4,000 . Provision for doubtful debts is to be made on debtors @10% and also provision of discount is to be made on debtors @3%. What will be the amount of bad debts charged in profit and loss A/c after considering provisions for bad debts? A..rs 2,700 B..rs 9,000 C..rs 12,700 D..rs..6,000 Can any body tell me the ryt answer with logic..!
105000-5000(further bad debts) - 10000(sales return) =90000
10'/. Of 90000=9000
Reason to subtract sales return is that when sales was made debtor a/c was debited (which means it increased) and when there are sales return, debtor is reduced .