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Just before admission a 5 percent provision for doubtful debts is created on debtors of ₹80000. How much will be debited to Revaluation Account?

Answer and explanation

Correct answer: ₹4000

A new provision reduces the realizable value of debtors so it is a loss. Calculate the provision by applying the percentage on debtors.

Related tags

Provision Doubtful DebtsDebtorsRevaluationAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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