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Question - Shah & Co. starts its business on 1 January 2019. During the year they sold goods on credit amounting Rs. 500000 and collected Rs. 260000 from these customers. However, out of remaining debtors, one debtor refused to pay his debt amounting Rs. 40000 on due date as he became bankrupt. At the year end it is estimated that another debtor is facing financial difficulties so he will not pay his debt, amounting 70000, on the due date so it is appropriate to create an allowance for this customer.
Required - Those three questions are given below.
Q1) Draw Receivable Accounts.
Q2) Draw Bad & Doubtful Debt Account.
Q3) Draw Allowance for Doubtful Debts Account.
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