Additional Tutorial Questions for Bad Debts Accounting
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ADDITIONAL REVISION QUESTIONS FOR BAD DEBTS ACCOUNTING Question 1 A business starts on 1 January 20X2 and its financial year end is 31 December an table of the accounts receivables, the bad debts written off and the allowance f debts at the end of each year is given. he double entry accounts and the e!trac final accounts follow. Years Accounts Receiva!es "a#ter a$ $ets %ritten o##& Ba$ $ets %ritten o## A!!o%ance #or $out#u! $ets 2010 "# $0,000 "#%,000 3& 2011 "# '0,000 "#(,000 %& 2012 "# (0,000 "#$,000 (& 2013 "# )0,000 "#),000 %& 201% "# %0,000 "#$,000 (& *re+are the bad debts and allowance for doubtful debts accounts, as well as the statement and balance sheet e!tracts for the years ending 31 December 2010, 2011 2013 and 201%. Question ' A business starts on 1 January 20X2 and its financial year end is 31 December an table of the accounts receivables, the bad debts written off and the allowance f debts at the end of each year is given. he double entry accounts and the e!trac final accounts follow. Years Accounts Receiva!es "e#ore a$ $ets %ritten o##& Ba$ $ets %ritten o## A!!o%ance #or $out#u! $ets 2010 "# $0,000 "#%,000 3& 2011 "# '0,000 "#(,000 %& 2012 "# (0,000 "#$,000 (& 2013 "# )0,000 "#),000 %& 201% "# %0,000 "#$,000 (&
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Transcript of Additional Tutorial Questions for Bad Debts Accounting
ADDITIONAL REVISION QUESTIONS FOR BAD DEBTS ACCOUNTING Question 1A business starts on 1 January 20X2 and its financial year end is 31 December annually. A table of the accounts receivables, the bad debts written off and the allowance for doubtful debts at the end of each year is given. The double entry accounts and the extracts from the final accounts follow.Years
Accounts Receivables (after bad debts written off)
Bad debts written off
Allowance for doubtful debts
2010RM 80,000RM4,0003%
2011RM 70,000RM5,0004%
2012RM 50,000RM8,0005%
2013RM 60,000RM6,0004%
2014RM 40,000RM8,0005%
Prepare the bad debts and allowance for doubtful debts accounts, as well as the income statement and balance sheet extracts for the years ending 31 December 2010, 2011, 2012, 2013 and 2014.
Question 2A business starts on 1 January 20X2 and its financial year end is 31 December annually. A table of the accounts receivables, the bad debts written off and the allowance for doubtful debts at the end of each year is given. The double entry accounts and the extracts from the final accounts follow.Years
Accounts Receivables (before bad debts written off)
Bad debts written off
Allowance for doubtful debts
2010RM 80,000RM4,0003%
2011RM 70,000RM5,0004%
2012RM 50,000RM8,0005%
2013RM 60,000RM6,0004%
2014RM 40,000RM8,0005%
Prepare the bad debts and allowance for doubtful debts accounts, as well as the income statement and balance sheet extracts for the years ending 31 December 2010, 2011, 2012, 2013 and 2014.Question 3A business had always made a provision for doubtful debts at the rate of 3% of accounts receivables. On 1 January 20X7, the provision brought forward from the previous year was RM160.During the year to 31 December 20X7, the bad debts written off amounted to RM840.On 31 December 20X7, the total remaining accounts receivables is RM7,400 and the usual provision for doubtful debts is to be made.You are required to show:a) The Bad Debts Account for year 20X7.b) The Allowance for Doubtful Debts Account for year 20X7.c) Income Statement extracts for year 20X7.d) Balance Sheet extracts for year 20X7.
Question 4A business had always made a provision for doubtful debts at the rate of 6% of accounts receivables. On 1 January 2012, the provision for this, brought forward from the previous year, was RM380.During the year to 31 December 2012 and 31 December 2013, the bad debts written off amounted to RM360 and RM 530 respectively.On 31 December 2012 and 31 December 2013, the remaining accounts receivables totaled RM8,800 and RM7,500 respectively, and the usual provision for doubtful debts is to be made.You are required to show:a) The Bad Debts Account for both years.b) The Allowance for Doubtful Debts Account for both years.c) Income Statement extracts for both years..d) Balance Sheet extracts for both years.
