Debtors:30000. Bad debts:300, provision for bad debt 5% on debtors, discount on debtors 2%. Kindly pass All necessary journal entries with amount?

1.      Bad Debts A/c Dr                                                      300

                 To Sundry Debtors                                                                         300

(To Write off Bad Debts)

2.      Profit and Loss A/c Dr                                             1485

                 To Provision for Bad and Doubtful Debts                                 1485

(Provision @5% of Debtors after writing off Bad Debts)

3.      Profit and Loss A/c Dr.                                            565

                 To Provision for Discount on Debtors                                        565

(Provision @2% of Debtors after allowing Bad Debts and Provision for Bad Debts)

Profit and Loss account will be debited with:

1. Bad Debts:                                                  300

2.Provision for Bad and Doubtful debts: 1485

3.Provision for Discount on Debtors:        565

In the Balance Sheet

Debtors will appear as:(30000 less300 less1485 less565 =27650)

Firstly, Dr. Debtors Account          29,400

             Dr, Discount Allow (2%)      600

             Cr. Sales                              30,000

To recognised the Bad debt in SOI

Secondly. Dr. Bad Debt              300

                   Cr. Debtors Account  300 

For the provision: 

                   Dr. Bad Debt (5%)                                  1500

                   Cr. Allowance for doubtful debt (5%)  1500

It was a good question my dear. Hope i answer your question correctly  

I agree with Mr. Venkitaraman Krishna Moorthy. he narrated the answer with a clear views.

For Bad debts write off : Bad Debts A/c                              Dr                        300/-

                                        To Sundry Debtors                                                                    300/-

For the Provision for Bad Debts:

(Deduct bad debt from debtors to find new provision)

                                        P & L A/c                                Dr                              1485

                                    To Provision for Badebt                                                                    1485

                                      (30,000-300 *5%)

Provision for Discount on Debtors:

(Deduct bad debts, provision for bad debt from sundry debtors and make the provision for the good debts)

                               P&L A/c                               Dr                            564.30

                        To Provision for Discount on debtors                                            564.3

Bad Debts  300 (P&L)

   To Debtors (XYZ)  300 (Balance Sheet)

Provision (30,000-300*5%)

To Provision for Bad Debts1,485 (Profit & Loss)

      To Provision for Bad Debts1,485 (Balance Sheet)

Discount (30,*2%)

Discount allowed564.30 (P&L)

   To Debtors (XYZ)  564.30 (Balance Sheet)

BAD DEBT AC -DEBIT300

PRO FOR BAD DEBTS AC- CREDIT300

                                       Dr.     Cr, 

1) Provision for bad debts  1485

    to Debtors                              1485

2)  Discount Allowed            564.30

     To Debtors                            564.30

BAD DEB AC DR.300

 TO DEBTORS .300/-

2-PROFIT AND LOSS AC DR1485

    TO PROVISSION FOR DD    1485

3-DISCOUNT AC DR594

TO DEBTORS594