Exercise 12.1 A firm commenced business on I January 2010 selling for cash and on credit. In the course of operations in 2012 and 2013 it was found necessary to write off debts as shown below: Date customer Amount written off 31 March 2012 Sena Abossey GH¢3,500 30 June 2012 Agnes Ayum GHe4,600 30 September 2012 Kofi Anaba GH¢3,800 30 April 2013 Jojo Amadi GHE1,s00 GHe 500 31 July 2013 31 October 2013 Serwaa Akoto Yaa Agoe GH¢ 300 On 31 December, 2012 and 2013 the balances on the Accounts receivable were GHe 255,000 and GHe320,000 respectively. The firm's policy was to make a provision for doubtful debts of 15% on the accounts receivable balance as at 31 December each year. You are required to prepare: i. The bad debts account for the two years ii. The provision for doubtful debts accounts for the two years and show thefinancial position extracts for the two years.

Exercise 12.1 A firm commenced business on I January 2010 selling for cash and on credit. In the course of operations in 2012 and 2013 it was found necessary to write off debts as shown below: Date customer Amount written off 31 March 2012 Sena Abossey GH¢3,500 30 June 2012 Agnes Ayum GHe4,600 30 September 2012 Kofi Anaba GH¢3,800 30 April 2013 Jojo Amadi GHE1,s00 GHe 500 31 July 2013 31 October 2013 Serwaa Akoto Yaa Agoe GH¢ 300 On 31 December, 2012 and 2013 the balances on the Accounts receivable were GHe 255,000 and GHe320,000 respectively. The firm's policy was to make a provision for doubtful debts of 15% on the accounts receivable balance as at 31 December each year. You are required to prepare: i. The bad debts account for the two years ii. The provision for doubtful debts accounts for the two years and show thefinancial position extracts for the two years.

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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