Liabilities | Amount | Assets | Amount | |
Debtors | 50,000 | |||
(-) Provision for doubtful debt | 5,000 | 45,000 |
1. | All debtors are good and provision for doubtful debts no longer needed | (A) | Revaluation Profit = 1000 |
2. | Provision for doubtful debts was found in excess by Rs. 2000 | (B) | Revaluation Profit = 5000 |
3. | Provision for doubtful debts reduced to Rs. 4000 | (C) | Revaluation Profit = 2000 |
4. | Provision for doubtful debts increased to Rs. 6000 | (D) | Revaluation Loss = 1000 |
A) 1-[B]; 2-[C]; 3-[D]; 4-[A]
B) 1-[B]; 2-[C]; 3-[A]; 4-[D]
C) 1-[C]; 2-[A], 3-[D]; 4-[B]
D) 1-[C]; 2-[D]; 3-[A]; 4-[B]
Correct Answer: B
Solution :
1-[B]; 2-[C]; 3-[A]; 4-[D]You need to login to perform this action.
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