In an organization, provision for Bad debts is Rs. 5,000 in the beginning. At the end total sales is Rs. 6,00,000 out of which Rs. 1,00,000 is cash sales. 1% provision is to be created on remaining debtors. The amount to be debited to profit and loss account in respect of provision is.
A. Rs. 6,000
B. Rs. 5,000
C. Rs. 1,000
D. Zero
Answer: Option D
This Question Belongs to Commerce >> Accounting
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