15 February 2011
In the given problem, tha actual debtors as on 31/12/2005 are 45,000/- they have deducted an amount of rs.4500/-(10% of the debtors for RBD(reserve for bad debts)
while calculating the net assets, take the debtors figure as 45,000/- and deduct from liabilities 4500/-as RBD.
if in the problem it says that the reseve to be maintained in future then take debtors as 45000 and deduct 4500 as RBD. else take debtors as 45000 only and do not deduct RBD. it depends up on the problem .and requirement.