The debtors ageing analysis for HARUNA limited is as shown below HARUNA LIMITED DEBTORS AGE ANALYSIS SHEET AS AT 31/12/2013 TOTAL Equal or less than 3 months >3 months < than 6 months 6 months to 1 year >1 year than 2 years Trade debtors GH¢ GH¢ GH¢ GH¢ GH¢ SAT LTD 58,000 4,000 12,000 12,000 30,000 NAN LTY 55,000 12,000 8,000 35,000 BUSH LTD 65,000 15,000 20,000 30,000 DAT LTD 56,000 8,000 8,000 40,000 TOTAL 234,000 24,000 35,000 40,000 135,000 After a review of the debtors ageing analysis it was agreed as follows Total Equal or less than 3 months >3 months 1 year less than 2 years Debt to be written off SAT LTD 4,000 2,000 2,000 NAN LTY 8,000 2,000 6,000 Specific provisions to be made NAN LTY 5,000 5,000 DAT LTD 5,000 5,000 A 10% general provision should be made on all outstanding balances. Balance on the provision for bad debts accounts as at 1/1/2013 was GH¢15,000 Required i) Determine the Bad Debt to be charged to the Profit and Loss account. Ii) Determine the Provision for Bad Debts to be charged to the Profit and Loss Account. Iii). Prepare the Balance Sheet Extracts for Debtor and Provision for Bad Debt under current assets as at 31/12/2013.
The debtors ageing analysis for HARUNA limited is as shown below
HARUNA LIMITED
DEBTORS AGE ANALYSIS SHEET
AS AT 31/12/2013
|
|
TOTAL |
Equal or less than 3 months |
>3 months < than 6 months |
6 months to 1 year |
>1 year than 2 years |
|
Trade debtors |
GH¢ |
GH¢ |
GH¢ |
GH¢ |
GH¢ |
|
SAT LTD |
58,000 |
4,000 |
12,000 |
12,000 |
30,000 |
|
NAN LTY |
55,000 |
12,000 |
8,000 |
|
35,000 |
|
BUSH LTD |
65,000 |
|
15,000 |
20,000 |
30,000 |
|
DAT LTD |
56,000 |
8,000 |
|
8,000 |
40,000 |
|
TOTAL |
234,000 |
24,000 |
35,000 |
40,000 |
135,000 |
After a review of the debtors ageing analysis it was agreed as follows
|
|
Total |
Equal or less than 3 months |
>3 months <than 6 months |
6 months to 1 year |
>1 year less than 2 years |
|
Debt to be written off |
|
|
|
|
|
|
SAT LTD |
4,000 |
|
|
2,000 |
2,000 |
|
NAN LTY |
8,000 |
|
2,000 |
|
6,000 |
|
Specific provisions to be made |
|||||
|
NAN LTY |
5,000 |
|
|
|
5,000 |
|
DAT LTD |
5,000 |
|
5,000 |
|
|
- A 10% general provision should be made on all outstanding balances.
- Balance on the provision for
bad debts accounts as at 1/1/2013 was GH¢15,000
Required
i) Determine the Bad Debt to be charged to the
Ii) Determine the Provision for Bad Debts to be charged to the Profit and Loss Account.
Iii). Prepare the
current assets as at 31/12/2013.
Iv). Prepare the Debtors age analysis schedule after the adjustments.
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