Citizen Appliances Company is using income statement approach for creating allowance for doubtful accounts during the period of sales. During 2019-20 the status of Accounts Receivables was as under:- Accounts Receivables Rs. 1,850,000 Less allowance f

To address your requirements, I'll break down each of the accounting entries step-by-step based on the transactions happening in the fiscal periods mentioned.

### 1) Record adjusting accounting entry for writing off the accounts receivables from Azad Company.

When the account receivable from Azad Company is written off, the following journal entry is made:

**Journal Entry:**
```
Date         Account Title                              Debit         Credit
July 2020    Allowance for Doubtful Accounts           Rs. 8,500
             Accounts Receivable - Azad Company                      Rs. 8,500
             (To write off accounts receivable from Azad Company)
```

### 2) Record Collection of amount from Azad Company who later paid some dues.

When Azad Company pays Rs. 5,000 subsequent to the write-off, we will need to reverse the write-off and then record the cash collection.

**Reversal Journal Entry:**
```
Date         Account Title                              Debit         Credit
Sept 2020    Accounts Receivable - Azad Company         Rs. 5,000
             Allowance for Doubtful Accounts                          Rs. 5,000
             (To reverse the write-off of Azad Company)
```

**Cash Collection Journal Entry:**
```
Date         Account Title                              Debit         Credit
Sept 2020    Cash                                       Rs. 5,000
             Accounts Receivable - Azad Company                     Rs. 5,000
             (To record cash collection from Azad Company)
```

### 3) Record the creation of additional allowance for doubtful accounts during 2020-21.

The company creates an allowance for doubtful accounts based on 1% of credit sales for the year. Given that credit sales amounted to Rs. 1,580,000:

**Calculation:**
```
1% of 1,580,000 = Rs. 15,800
```

Assuming there was an existing allowance for doubtful accounts of Rs. 20,000 before the write-off of Rs. 8,500 and the reversal of Rs. 5,000. The new allowance needs to be adjusted so the total allowance should equal the new calculated amount.

**Current Allowance Amount:**
```
Initial Allowance: Rs. 20,000
Write-off: Rs. 8,500
Reversal: Rs. 5,000
Remaining Allowance after write-off and reversal = Rs. 20,000 - Rs. 8,500 + Rs. 5,000 = Rs. 16,500
```

The additional allowance required:
```
New Allowance needed = Rs. 15,800, so no additional allowance is needed as existing is higher.
```

If we need to create the allowance of Rs. 15,800, we can make the journal entry as well, but since it is already higher we will note it.

If creating the entry anyway:
```
If additional allowance was needed:
Account Title                              Debit         Credit
            Allowance for Doubtful Accounts          Rs. X
            Bad Debts Expense                                   Rs. X
(To adjust allowance for doubtful accounts to 1% of sales)
```

Since the current allowance is sufficient, no new amount is needed.

### 4) Present the accounts receivables in the balance sheet as at 30 June 2021.

**Balance Sheet (extract) as of June 30, 2021:**

```
Accounts Receivable:
   Gross Accounts Receivable                      Rs. 1,530,000
   Less: Allowance for Doubtful Accounts          Rs. 15,800
   Net Accounts Receivable                         Rs. 1,514,200
```

### Summary:
- The adjusting entries have been recorded appropriately for the write-off, collection, and allowance for doubtful accounts as per policy.
- The balance sheet reflects the correct net accounts receivable as of June 30, 2021.