Consider old provision for bad and doubtful debts Rs. 2,000; Sundry Debtors = Rs. 25,000 and the requirement of fresh provision for bad and doubtful debts = 10 per cent on sundry debtors. So, what is the amount of additional provision to be credited?
1
Rs. 2,000
2
Rs. 1,500
3
Rs. 1,000
4
Rs. 500