Debtors at the end of the year are Rs 100,000, and bad debts of Rs 3,000 are to be written off. What provision for doubtful debts at 10% is required on the remaining debtors?
Answer and explanation
Correct answer: C. Rs 9,700
- Step 1: Debtors after the write-off = 100000 - 3000 = 97000.
- Step 2: Provision = 97000 x 10% = 9700.
Answer
Rs 9,700.
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