Sundry debtors in the balance sheet of Onoja Bakery and Sons totaled ₦800,000. A provision of 2% was made for discount and 5% provision for bad and doubtful...
Question 1 Report
Sundry debtors in the balance sheet of Onoja Bakery and Sons totaled ₦800,000.
A provision of 2% was made for discount and 5% provision for bad and doubtful debts.Find the amount for sundry debtors after provision?
Answer Details
To find the amount for sundry debtors after provision, we need to subtract the total provision from the total sundry debtors.
The provision for discount is 2% of ₦800,000 which is:
2/100 x ₦800,000 = ₦16,000
The provision for bad and doubtful debts is 5% of ₦800,000 which is:
5/100 x ₦800,000 = ₦40,000
Therefore, the total provision is:
₦16,000 + ₦40,000 = ₦56,000
To find the amount for sundry debtors after provision, we need to subtract the total provision from the total sundry debtors:
₦800,000 - ₦56,000 = ₦744,000
Therefore, the amount for sundry debtors after provision is ₦744,000.
Hence, the correct option is ₦744,000.
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