Provision for doubtful debts adjustment (P&L)

dieselheaddieselhead Feels At HomePosts: 28Registered
Hi, does anyone know about this; it has featured in both the last two FRA exams and my Kaplan textbook makes no mention of it:

Provision for doubtful debts adjustment (P&L) DR
Provision for doubtful debts (BS) CR

The task (2.2, Dec 2008) tells you to increase the provision by £70. The kaplan book says you would debit the Bad debts expense a/c with this sum.

Comments

  • OlympicRudiOlympicRudi Feels At Home Posts: 55Registered
    dieselhead wrote: »
    Hi, does anyone know about this; it has featured in both the last two FRA exams and my Kaplan textbook makes no mention of it:

    Provision for doubtful debts adjustment (P&L) DR
    Provision for doubtful debts (BS) CR

    The task (2.2, Dec 2008) tells you to increase the provision by £70. The kaplan book says you would debit the Bad debts expense a/c with this sum.

    Yes, I've seen it both ways too. My guess would be they'd both be acceptable(I'd go for doubtful debts adjustment if I had the choice), but you'd have to get a Tutor to confirm. Luckilly I did the computer based FRA, which gives you multi choice account names, so it was never really an issue for me.

    Looking at this specific question though, I'd always go for the Provision for doubtful debts adjustment option since it's what the AAT seems to prefer from all the past exams I've seen.
  • dieselheaddieselhead Feels At Home Posts: 28Registered
    Thanx Rudi

    I don't have a tutor - only you good people!

    I didn't know you could do computer based FRA - sounds like it might be easier if it's multi-guess
  • OlympicRudiOlympicRudi Feels At Home Posts: 55Registered
    dieselhead wrote: »
    Thanx Rudi

    I don't have a tutor - only you good people!

    I didn't know you could do computer based FRA - sounds like it might be easier if it's multi-guess

    Yes you can do computer based tests for Units 30, 3(for NVQ), 5 & 6 aswell as some other AAT qualifications. You just have to find a centre that does them.

    Here are the practice computer tests.

    http://www.aat.org.uk/content/item18267/

    They can also be found by typing cbe in the search box on the AAT website. Remember to be signed in though.

    Also some info on CBEs here

    http://www.aat.org.uk/content/item18261/

    and something else you may not be aware of is e-learning

    https://www.aat.org.uk/myaat/unit/elearningzone/

    PS. The other good thing about CBEs is that you can take them anytime of the year. However they will only give you a Pass/Fail & not a %. If you want the answers to the practice papers, they are just converted old paper based exams. So just search through the old paper ones(If you don't know where these are on the website, let me know & I'll give you directions) until you find the right one. Not all the questions will be the same, but most usually are.
Sign In or Register to comment.