Q$.3($a$)$ The following balances appear in the trial balance of a firm as on $31\mathrm{.}03\mathrm{.}2024$:

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline Provision for bad and doubtful debts $($as on April $1\backslash (\{\}^\{\backslash$text $\{$st $\}\}2023\backslash ))$ & $2500\backslash \backslash$

$\backslash$hline Debtors & $50000\backslash \backslash$

$\backslash$hline Bad Debts & $4000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

The firm has proposed to maintain a provision of $\backslash (10\backslash \%\backslash )$ on debtors for bad and doubtful debts. You are required to give the treatment of the above adjustment in the financial statements of the firm.

$(5$ Marks$)$

Q$.3($b$)$ Match the accounting concept with the description of the concept that is given in the description column:

$(5$ Marks$)$

$\backslash$begin$\{$tabular$\}\{|$llll$|\}$

$\backslash$hline & Concept & & Description of the Concept $\backslash \backslash$

$\backslash$hline A & Business Entity & A & Every transaction or event has two aspects $\backslash \backslash$

$\backslash$hline B & $\backslash$begin$\{$tabular$\}\{$l$\}$

Money $\backslash \backslash$

Measurement

$\backslash$end$\{$tabular$\}$ & B & $\backslash$begin$\{$tabular$\}\{$l$\}$

Financial statements are prepared on the $\backslash \backslash$

assumption that the business entity will continue $\backslash \backslash$

to exist for an indefinite period of time.

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline C & Cost & C & $\backslash$begin$\{$tabular$\}\{$l$\}$

Books of account record only those transactions $\backslash \backslash$

that can be measured in terms of money.

$\backslash$end$\{$tabular$\}\backslash \backslash$

D & Going Concern & D & $\backslash$begin$\{$tabular$\}\{$l$\}$

The value of an asset shown in the balance $\backslash \backslash$

sheet is not its current market value but is the $\backslash \backslash$

price paid for its acquisition

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline E & Dual$-$aspect & E & $\backslash$begin$\{$tabular$\}\{$l$\}$

The business enterprise and its owners are $\backslash \backslash$

independent entities

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$**********$