AP2 Practice CBA Help

Focus888
Focus888 Registered Posts: 46 ? ? ?
I have been practicing the CBA for AP2 and one bit i am confused on why my answer is not correct.

The last question with the balance sheet. The sales figure i get is £46,185 (£47,000 take £900 for the allowance of doubtful debts and add £85 for the change in doubtful debt) but their correct answer is £46,100. Why is that? have i got it completely wrong?

Thanks

Comments

  • twinks01
    twinks01 Registered Posts: 16 Dedicated contributor ? ? ?
    The doubtful debts adjustment account goes to the P&L, either as an expense if it is a debit balance or if it has a credit balance, sundry income (well thats where I put it in the exam anyway!).
  • Jay1981
    Jay1981 Registered Posts: 36 ? ? ?
    Don't add the change in doubtful debt figure. This is an expense, therefore in the P+L.
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