Provision for bad debts to be increased to 15% .In balance sheet givenDebtors 20,000(Less) provision 1,000 19000For debtors What will be the effect in revaluation A/c ?

Dear Student, in this case, Provision for Bad-Debts is to increased by 15% of 20,000 i.e. Rs 3,000 and existing provision is Rs 1,000. Therefore, now it should be increased with Rs 2,000 (3,000 - 1,000). Thus, it should be shown on the Debit side of Revaluation Account. 
 
Revaluation Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
       
Provision for Bad-Debts 2,000    
       
       
       

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in revaluation a/c provision for doubtful debts will be debited by 2000
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provision for doubtful debts dr.2000

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