alleryBad debts ₹5,000; provision for doubtful debts opening ₹3,000; required closing provision ₹4,000. P&L charge:
A₹6,000 combined charge
B₹5,000 bad debt only
C₹4,000 provision rise
D₹9,000 grand total
Answer & Solution
Correct answer: A. ₹6,000 combined charge
1. Bad debts written off ₹5,000.
2. Provision adjustment: closing 4,000 − opening 3,000 = +1,000.
3. Total charge to P&L = 5,000 + 1,000 = ₹6,000.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.4 provision for doubtful debts_
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