Please explain:
Debtors of Rs. 2,000 will be written off as bad debts and a provision of 5% on debtors for bad and debtors Doubtful debts will be maintained.
Debtors :                           45,000 |
Less Provision :                  5,000 |    40,000

Dear Student,

Already prepared provision on debtors of Rs 45,000 is Rs 5,000;

When we say that Debtors of Rs 2,000 would be written off as bad debts then the Net debtors would be Rs 43,000 and provision of 5% on it would be maintained which would be Rs 2,150;

So net situation would be Debtors 43,000; Less : Provision Rs 2,150



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pls sir
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