In this question how to calculate the existing rate of provision for doubtful debt - Accountancy - Reconstitution- Retirement/Death of a Partner

Question

In this question how to calculate the existing rate of provision
for doubtful debt

Shubham Kalra · Accepted Answer

Dear Student,

Debtors= Rs 16000
Old provision= Rs 800

Existing rate of provision is= old provision÷debtors ×100existing provision=800/16000×100= 5%

Now, new debtors= Rs (16000-1100)= Rs 14900
New provision= 5% of 14900= Rs 745

Regards!!