Multiple choice

Sundry debtors on 31st March, 2006 are Rs. 55,200. Further bad debts are Rs. 200. Provision for doubtful debts is to be made on debtors at the rate of 5% and also, provision of discount is to be made on debtors at the rate of 2%. The amount of provision of doubtful debts will be

  1. Rs. 1,045

  2. Rs. 2,750

  3. Rs. 1,100

  4. Rs. 2,760
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Out of debtors Rs. 55,200, Rs. 200 are bad debts and provision is to be created on balance of Rs. 55,000 at the rate of 5%, i.e. Rs. 2,750.

Keep practicing — related questions