Question :
1. Debtors of Rs. 1,000 be written off as it is no longer receivable. 2. Provision for Doubtful Debts be maintained at the existing rate. Revaluation account will be
Option 1: Debited by Rs 750
Option 2: Debited by Rs 550
Option 3: Debited by Rs 950
Option 4: None of the above
Correct Answer: Debited by Rs 950
Solution : Answer = Debited by Rs 950 Bad debt A/c......Dr 1,000 To Debtors A/c 1,000 Provision for doubtful debt A/c.........Dr 800 Revaluation A/c................................Dr 200 To Bad debt A/c 1,000. Revaluation A/c.........Dr 750 To Provision for doubtful debt A/c 750 (16,000-1,000= 15,000×5%) Hence, the correct option is 3.
Furniture
Premises are undervalued by 20%, stock is overvalued by 10% and provision for doubtful debts was to be made 5% on debtors. Further provision for legal damages is to be made for Rs.4,100 and furniture is to be brought up to Rs.45,000. Profit and loss on revaluation is ---------------
Option 1: Loss Rs 18,000
Option 2: Profit Rs 18,000
Option 3: Neither profit nor loss
Option 4: Profit Rs 10,000
Question : From the following information,
Question: Interest on Non Current Investments __________.
Option 1: Rs 16,000
Option 2: Rs 6,000
Option 3: Rs 11,000
Question: Interest on Investment if new investment was made on 1 October 2019 _______.
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