30 August 2013
In a concern, the opening provision of doubtful debts is 51000. During the year a sum of 10000 was written off as bad debts . The closing balance of sundry debtors amounts to 630000. It was decided that 10% of the debtors is to maintained as provision . Calculate the closing balance towards the provision for doubtful debts and pass journal entry for the given effect of provision maintained ???