Question - 04

On 1st January, 2001 the balance of Provision for Doubtful Debts wsa Rs. 4,000 the bad debts Rs. 1,900 were written off during the year 2001 the sundry debtors on 31st Dec. 2001 are Rs. 25,000 and new provision of 6% on the sundry debtors is required.
Give the necessary entry and show these items in Profit & loss A/c and Balance sheet.