4. A business had always made a provision for doubtful debts at the rate of 4% of debtors. On 1 January 20X8 the provision for this, brought forward from the previous year, was Tshs 320,000.During the year to 31 December 20X8 the bad debts written off amounted to Tshs 680,000.On 31 December 20X8 the remaining debtors totaled Tshs 1,680,000 and the usual provision for doubtful debts is to be made., You are required to show: (a) The Bad Debts Account for the year ended 31 December 20X8. (b) The Provision for Doubtful Debts Account for the year. (c) Extract from the Profit and Loss Account for the year.

4. A business had always made a provision for doubtful debts at the rate of 4% of debtors. On 1 January 20X8 the provision for this, brought forward from the previous year, was Tshs 320,000.During the year to 31 December 20X8 the bad debts written off amounted to Tshs 680,000.On 31 December 20X8 the remaining debtors totaled Tshs 1,680,000 and the usual provision for doubtful debts is to be made., You are required to show: (a) The Bad Debts Account for the year ended 31 December 20X8. (b) The Provision for Doubtful Debts Account for the year. (c) Extract from the Profit and Loss Account for the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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