8. Prepare a Trial balance as at 31 December 2015, with the following accounts balances. Account Sales Purchases. Rent Electricity Salaries & Wages Discount allowed Buildings Fixtures Accounts receivable Sundry expenses Accounts payable Cash at bank Drawings Motor vans Motor expenses Capital Amount (P) 532 000 308 000 7600 1400 104 000 6 000 169 600 4 000 62 400 600 32 000 30 000 57 200 32 000 9 200 228 000
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Step by step
Solved in 3 steps
