Admission of a Partner 2022-23 Ts Grewal Book Solutions

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Existing Rate of Provision for Doubtful Debts: 15000/150000×100 = 10 %

New Provision for Doubtful Debts:

An amount of ₹ 12,000 due from Mohan, a debtor, is to be written off as no longer receivable

150000 – 12000 = 138000

Now new provision at the rate of 10% of 1,38,000 = ₹ 13,800/-

But the amount from old provision is still remain up 3000 (₹ 15,000 – ₹ 12,000)

So, Provision of only ₹ 10,800 ( ₹ 13,800 – ₹ 3,000 ) is required to be created through Revaluation Account.