of doubtful debts. In the balance sheet, it will be shown as a deduction from

of doubtful debts. In the balance sheet, it will be shown as a deduction from sundry debtors. Trading and Profit and Loss Account of Ankit for the year ended March , Cr. Expenses/Losses Revenues/Gains , , , , Add Outstanding , Gross profit c/d , , , , , Salaries , Gross profit b/d , Less Prepaid salary ( , ) Rent of building , Commission received , Depreciation – Furniture Add Accrued , , commission Add Further bad debts , , Provision for doubtful debts Net profit (transferred to Ankit’s , capital account) , , Balance Sheet of Ankit as at March , Liabilities Amount Assets Owners Funds Non-Current Assets Add Net profit , , Less Depreciation ( , ) , Non-Current Liabilities Current Assets Long-term loan , Debtors , Less Furtherbad debts , , Less Provision for , doubtful debts Current Liabilities & Provisions Prepaid salary , Accrued commission Outstanding wages Bank Rent received in advance , Cash , ,