PRC-1 · Chapter 5 · Question 30 of 100
Following the previous scenario (Base for general allowance = 306,500; Specific allowance = 15,000). At 5%, what is the TOTAL closing allowance for doubtful debts?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 30,325
Explanation
The general allowance is 5% of 306,500 = Rs. 15,325. The total closing allowance is the sum of the specific allowance and the general allowance: 15,000 + 15,325 = Rs. 30,325.
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