Question : Writing off bad debts against the provision for doubtful debts; would result in inflow/outflow/no flow of Cash and Cash Equivalents:
Option 1: Inflow of cash
Option 2: Outflow of cash
Option 3: Neither inflow Nor outflow
Option 4: Cash and cash equivalent
Correct Answer: Neither inflow Nor outflow
Solution : Answer = neither inflow nor outflow of cash If bad debt is written off against provision for doubtful debts would result in no flow of cash Provision for doubt full debt A/ C Dr To Bad debts A/c Hence, the correct option is 3.
Question : In the Balance Sheet, Debtors exist at Rs. 1,00,000 and Provision for Doubtful Debts at Rs. 3000. How much amount will be realised from Debtors, if bad debts are Rs. 20,000 and remaining debtors are realised at a discount of 10%.
Question : In the Balance sheet, Debtors exist at Rs.50,000 and Provision for Doubtful Debts at Rs.1,500. How much amount will be realised from Debtors, if bad debts are Rs.10,000 and remaining debtors are realised at a discount of 5%.
Question : In the Balance Sheet, Total Debtors appear at Rs.5, 00,000 and Provision for Doubtful Debts appears at Rs. 1,50,00. How much amount will be realised from Debtors if bad debts amount to Rs. 1,00,000 and remaining debtors are realised at a discount of 5%?
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