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 £320. During the year to 31 December 20X8 the bad debts written off amounted to £680. On 31 December 20X8 the remaining debtors totalled £16,800 and the usual provision for doubtful debts is to be made. You are 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. (d) The relevant extract from the Balance Sheet as at 31 December 20X8
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 £320. During the year to 31 December 20X8 the bad debts written off amounted to £680. On 31 December 20X8 the remaining debtors totalled £16,800 and the usual provision for doubtful debts is to be made. You are 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. (d) The relevant extract from the Balance Sheet as at 31 December 20X8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 £320.
During the year to 31 December 20X8 the
On 31 December 20X8 the remaining debtors totalled £16,800 and the usual provision for
doubtful debts is to be made.
You are 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
(d) The relevant extract from the
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