Essay on Accounting bad debet

Submitted By Noelloyd
Words: 358
Pages: 2

Due: Wednesday, December 31, 2014 at 8:59 pm
1. During the year to 31 December 20X6,the following debts are found to be bad and are written off on the dates shown:
9 March
T Wright, £86
30 May
S O’Connor, £111
25 June
C Smith, £75
10 October
S Proctor, £39
Show the bad debts account and the effect on the profit and loss account for the year ended 31 December 20X6.
1. The following are the total figures for debtors at the end of each financial year. The provision for doubtful debts is to be maintained at 4% of debtors at the year-end.
Year ended 31 December
Value of debtors (£)
20X1
£12,000
20X2
£15,000
20X3
£14,000
Assuming no provision had previously existed you are required to:
(a) Construct the provision for doubtful debts account for 20X1, 2 and 3.
(b) Show the relevant entries on the profit and loss account for the year ended 31 December 20X1, 2 and 3.
(c) Show the debtors on balance sheet extracts as at 31 December 20X1, 2 and 3.
1. On 1 July 20X6 there was a balance of £600 in the Provision for Doubtful Debts Account and it was decided to maintain the provision at 5% of the debtors at each year-end. The debtors at 30 June for the next three years were:

£
20X7
15,000
20X8
10,000
20X9
10,000
Show the provision for doubtful debts account for the period 1.7.X6 to 30.6.X9
1. As at 1 April 20X8 we were owed £650 from Paul Evans. On 26 July Evans was declared bankrupt. A payment of 35p in the £ was received in full settlement. The remaining balance was written off as a…