Financial Statements Practice Assessment 1 - Task 1.2

dnewton1989

Hello everyone,

Could someone please advise on task 1.2 on practice assessment 1 of the 2013 Financial Statements.

I am struggling with the Trade and Other Receivables calculation, this is what I get.

Trade Receivables - £12,447
Allowance for doubtful debts (£236)
Adjustment for doubtful debts - £47

This gives me an answer of £12,258

When I am checking back to the answers they are saying it's £12,294.

Could anyone please explain to me where I am going wrong!

Thank you
Danny

beckydownes1

You have forgotten about the prepayment for insurance expenditure of £130 which is £156/12 x 10 = 130

So it is then:
Trade receivables - 12,447
allowance for doubtful debts (283)
Prepayment 130
= £12,294

dnewton1989

Thank you @beckydownes1

Very much appreciated!