chapter - final account of banking company
question- compute the amount of provision for doubtful debts from the following details of advances of national bank ltd.
(Rs. in lakhs)
Total Loan and Advances 50
Fully secured advance without any default by the
borrower 30
Advance overdue for 12 months 10
Advances overdue for more than 30 months (secured
by mortgage of plant worth Rs. 3 lakhs) 5
Non-recoverable unsecured advances 3
Small advance not exceeding rs. 25000 to each
borrower 2