In the balance sheet total debtors appear at rs 50000 and provision for doubtful debts appear at rs 1500. How much amount will be realised from debtors of bad debts amount to rs.10000 and remaining debtors are realised at a discount of 5% ?

Dear Student
Total debtors        =  50000
(-)bad debt           = (10000)
(-) discount of 5% = (2000)
realised debtor     = 38000
 total realised debtor is Rs 38000 and provision for doubtful debt is transfer to credit side of Realisation account.

Regards
 

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