Page 194 - DMGT104_FINANCIAL_ACCOUNTING

Date Particulars L.F. ( ) ( )
Financial Accounting
Dec 31 Provision for Bad & doubtful debts Dr. 940.00
To Bad debts A/c 940.00
(Bad debts transferred.)
Notes Dec 31 Provision for discount on debtors A/c Dr. 1,860.00
To Discount allowed A/c 1,860.00
(Discount allowed transferred.)
Dec 31 Bad debts Recovered A/c Dr. 50.00
To Profit & Loss A/c 50.00
(Gain transferred.)
Dec 31 Provision for Bad & doubtful debts A/c Dr. 194.40
To Profit & loss A/c 194.40
(Excess transferred.)
Dec 31 Profit and loss A/c Dr. 377.00
To Provision on discount on debtors A/c 377.00
(Discount on debtors transferred.)

Ledger Accounts
(i) Provision for Bad and doubtful debts A/c

Date Particulars ( ) Date Particulars ( )
Dec. 31 To Bad debts A/c 1,420 Jan. 1 By Balance b/d 2,400.00
Dec 31 To P & L A/c 194.40
(Bal. Figure)
Dec. 31 To Balance c/d 785.60
2,400.00 2,400.00

(ii) Bad debts A/c
Date Particulars ( ) Date Particulars ( )
Dec 31 To S. debtors A/c 940 Dec 31 By Provision for Bad
& Doubtful debts A/c 1,420
Dec 31 To debtors A/c 480
1,420 1,420

(iii) Provision for Discount on Debtors A/c
Date Particulars ( ) Date Particulars ( )
Dec 31 To Discount on Debtors 1,860 Jan 1 By Balance b/d 1,120
Dec 31 To Balance c/d 377 Dec. 31 By Profit & Loss A/c 1,117
2,237 2,237

(iv) Discount on Debtors A/c
Date Particulars ( ) Date Particulars ( )
Dec 31 To S. Debtors 1,860 Dec 31 By Provision for 1,860
Discount on Debtors
A/c

(v) S. Debtors A/c

Date Particulars ( ) Date Particulars ( )
Dec 31 To Balance b/d 20,120 Dec. 31 By Bad debts 480
By Balance c/d 19,640
20,120 20,120

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