alleryStart learning →Bad debt provision is raised from Rs 20,000 to Rs 32,000 on new information. Extra charge this period?
ARs 32,000
BRs 20,000
CRs 52,000
DRs 12,000
Answer & Solution
Correct answer: D. Rs 12,000
The estimate revision is charged to the current period, and the extra provision is 32,000 less 20,000 = Rs 12,000.
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