Bad debts rupees 1000 are to be written off and a reserve of 5% is to be kept on remaining debtors

Answers 1

Explanation:

In this question, you have to subtract 1000 bad debts from total debtors. And then calculate 5% on the answer you got after subtracting 1000.

For example,

Debtors. 20,000

Bad debts -1000

_______________

19,000

Bad debt

Reserve - 950

_____________

18,050

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