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Following are the extracts from the trial balance of a firm as at 31st March 2009Name of the accountDrCrSundry debtors2,05,000Bad debts3,000Additional Information
1) After preparing the trial balance, it is learnt that Mr.X a debtor has become insolvent and nothing could be recovered from him and, therefore the entireamount of Rs.5,000 due from him was irrecoverable.
2) Create 10% provision for doubtful debt.Required: Pass the necessary journal entries and show the sundry debtorsaccount, bad debts account, provision for doubtful debts account, P&L a/c andBalance sheet as at 31st March 2009.
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