CPT Accounts

Sowmya Lakshmi (CPT) (23 Points)

07 April 2008  

Hi

I am a CPT student. am having some problem with Accounts. Please do help me. This is the question

TRIAL BALANCE FIGURES

Bad debts                                                       4000

Sundry Debtors                                             54000

Provision for bad & Doubtful debts           4000

Provision for discount on debtors             2000

The Adjustments are as follows

(1) Provision for bad & doubtful debts to be maintained @ 10% of debtors

(2) Further bad debts written off Rs. 1000

(3) Create provision on discount of debtors at 10%

(4) An amount of Rs 500 received from a debtor was wrongly credited to sales A/c

(5) Sales include Goods worth Rs 500 sent out on approval basis to S.M Corporation and remained sold as on 31.03.2007. The cost of the Goods was Rs.100

Calculate

(a) Adjusted figure of Sundry debtors

(b) Provision for bad debts

(c) Amount to be transferred from P&L a/c to Provision for bad debts

(d) Provision for discount on Debtors

(e) Amount to be transferred from P&L A/c to Provision for discount on debtors

I am Not getting the answer. The answer given is (a) 42,120 (b) 5200 (c) 1200 (d) 4680 (e) 2680

PLEASE HELp ME. I am Frustrated with this problem