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On admission a (5%) provision for doubtful debts is to be created on debtors of ₹80000. What loss will be recorded in revaluation account?

Answer and explanation

Correct answer: ₹4000

Provision will be (80000 \times 5% = ₹4000). Creating new provision is a loss so it is debited to revaluation account.

Related tags

Provision Doubtful DebtsDebtorsNumericalAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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