The following are the information available from the Trial Balance of Mr. Ali & Sons for the year ended on 31st December 2010

The following are the information available from the Trial Balance of Mr. Ali & Sons for the year ended on 31st December 2010.

Particulars Debit Credit

Accounts receivable 205,000

Bad debts 8,000

Provision for doubtful debts 6,000



Adjustments:

Write off Rs. 5,000 bad debts from accounts receivable.
Maintain provision for doubtful debts at 5%.
Required:

1. Calculate new provision.

2. Calculate the amount of Provision for doubtful debts to be appeared in Profit and

Loss Account.

3. Calculate the amount of Sundry debtors to be shown in Balance Sheet.

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