X and Y are partners in a firm sharing profits in the ratio of 3: 2....

 

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X and Y are partners in a firm sharing profits in the ratio of 3: 2. They admitted Z as a new partner for 1/4th share of profits. At the time of admission of Z Debtors and Provision for Doubtful Debts appeared at Rs.76, 000 and Rs.8,000 respectively. Rs.6,000 of the debtors proved bad. A provision of 5% is to be created on Sundry Debtors for doubtful debts. Pass the necessary Journal entries. X and Y are partners in a firm sharing profits in the ratio of 3: 2. They admitted Z as a new partner for 1/4th share of profits. At the time of admission of Z Debtors and Provision for Doubtful Debts appeared at Rs.76, 000 and Rs.8,000 respectively. Rs.6,000 of the debtors proved bad. A provision of 5% is to be created on Sundry Debtors for doubtful debts. Pass the necessary Journal entries.

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Provision for doubtful debts is created as a reserve for any bad debt that occurs Accordi... View the full answer