In this question how to calculate the existing rate of provision for doubtful debt

Dear Student,

Debtors= Rs 16000
Old provision= Rs 800

Existing rate of provision is= old provision÷debtors ×100existing provision=800/16000×100= 5%

Now, new debtors= Rs (16000-1100)= Rs 14900
New provision= 5% of 14900= Rs 745

Regards!!

  • 6
i.e. whatever the provision is available is sufficient and carried forward without any change. Hence, no adjustment is needed for this account. Keep it as it is.
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