# 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.

## 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

Provide 10% provision for doubtful debts

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

Solution

Provision for doubtful debt account

 Date Particulars J/F Amount Date Particulars J/F Amount To Bad debt 3000 By balance b/d 5000 To balance c/d 10000 By P/L a/c 8000 13000 13000

## 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

• 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

 Date Particulars J/F Amount Date Particulars J/F Amount To old bad debt 3000 By balance b/d 3000 To new bad debt 2500 By P/L a/c 5000 To balance c/d 2500 8000 8000

## 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

• 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

 Date Particulars J/F Amount Date Particulars J/F Amount To old bad debt 2000 By balance b/d 5000 To new bad debt 3000 By P/L a/c 4700 To balance c/d 4700 9700 9700

## 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

 Date Particulars J/F Amount Date Particulars J/F Amount To bad debt (40000 * 2%) 800 By balance b/d 1200 To balance c/d 1960 By P/L a/c 1560 2760 2760

## 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

 Date Particulars J/F Amount Date Particulars J/F Amount To bad debt 2000 By balance b/d 1800 To closing balance 2900 By P/L a/c 3100 4900 4900

## 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

Provision for doubtful debt account

 Date Particulars J/F Amount Date Particulars J/F Amount To bad debts a/c 2700 By Balance b/d 3000 To balance c/d 3000 By P/L a/c 1700 5700 5700