Question
A firm reports the following balances in its trial
balance: The firm provides a discount of 8% on Trade Receivables. The total discount allowed and provision to be accounted for in the Profit and Loss Account for the year ending 31.03.2022 is:Solution
The provision for discount = 8% of ₹1,80,000 = ₹14,400. Total discount allowed = ₹5,000. The total amount to be charged is ₹5,000 + ₹14,000 = ₹16,000.
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