The correct answer is B. Rs. 575.
The debtors are Rs. 30,000 (before bad debts of Rs. 1,000 and provision of bad debts at 5%). This means that the net amount of debtors is Rs. 29,000 (30,000 – 1,000).
A provision for discount on debtors @ 2% means that 2% of the net amount of debtors is set aside to cover bad debts. This is calculated as follows:
2% * 29,000 = Rs. 575
Therefore, the provision for discount on debtors @ 2% is Rs. 575.
Option A is incorrect because it is the amount of the provision for bad debts, not the provision for discount on debtors.
Option C is incorrect because it is the amount of the provision for discount on debtors, but it is calculated using the wrong percentage.
Option D is incorrect because it is the amount of the provision for discount on debtors, but it is calculated using the wrong net amount of debtors.