Solution of Provision for Doubtful Debts Account Class 11

The article provides complete possible questions of Provision for doubtful debts account also known as provision for bad debt along with solutions based on the syllabus of NEB of class 11. 

Reserve meaning, types, and objectives

Problem 1

The following extracts and the additional information are provided from took of trading business as 30 December 2001

Trial balance on 30 December 2001

Particulars	Debit	Credit
Sundry Debtors	100000
Bad debts	3000
Provision for doubtful debt		55000

Additional Information

               Provide 10% provision for doubtful debts

Required: Provision for doubtful debt account    (Ans: P/L a/c: 8000)

 

Solution

Provision for doubtful debt account

 

Problem 2

The following information was provided to you for the year ended December 30, 2022

Trial balance on 30 December

Particulars	Debit	Credit
Account receivable	52000
Bad debts	2500
Provision for doubtful debt		3000

Additional information:

• Further bad debt amounted to 2000
• Create provision for doubtful debt 5% of Account Receivable

Required: Provision for doubtful debt account    (Ans: P/L a/c: 5000)

 

Solution

Provision for doubtful debt account

 

Problem 3

Following are the balance taken from the trial balance of a trader as on 30 December

Particulars	Debit	Credit
Debtors	50000
Provision for bad debts		5000
Bad debts	2000

Additional information:

• Further bad debts 3000
• Provision for bad debts on a debtor to be created @10%.

Required: Provision for doubtful debt account    (Ans: P/L a/c: 4700)

 

Solution

Provision for doubtful debt account

 

Problem 4

A company’s closing debit balance of account receivables was 40000 and the opening credit balance of provision for doubtful debts was 1200. The company decided to write off 2% on receivables for bad debts and create 5% for provision for doubtful debts.

Required: Provision for doubtful debts account  (Ans: P/L a/c: 1560)

 

Solution

Provision for doubtful debt account

 

Problem 5

The ending balance of sundry debtors was 60000 and the beginning credit balance of provision for doubtful debts of a firm was 1800.

The firm decided to write off 2000 as bad debts and maintain provision for doubtful debts equal to 5% on sundry debtors.

Required: Provision for bad debts             (Ans: P/L a/c: 3100)

 

Solution

Provision for doubtful debt account

 

Problem 6

The following information was provided to you

a.	Reserve for doubtful debts at the beginning of the year	4000
b.	Bad debts written off for the year	2700
c.	Amount of debtors at the close of the year	60000
d.	Reserve for doubtful debts is to be maintained at @5% of the debtors

Required: Reserve for doubtful debt account       (Ans: P/L a/c: 1700)

Solution