Provision for Doubtful Debts be maintained at existing rate. ish ma 5% laga ga humasaha or agr ya lagta ha tho hum ish nikala ga kasha mera pls explain thi thing in t.s grewal Page no.5.14 illustration 15 im new book 2 point sir pls explain as soom as

Dear Simple, in this question the existing rate of Provision for Doubtful Debts on Debtors is 5% (i.e.Rs 1,600 = Rs 32,000 × 5%). Therefore, the new rate should also be 5% on 29,800 (Rs 32,000-1,600-600).

Note: There is no such provision which states that the rate of Provision for Doubtful Debts should always be 5%. 

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