Home For AAT student members AQ 2016 Advanced Diploma in Accounting General discussion - Advanced level
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

Specific allowance for doubtful debts recovered adjustment question

Can anyone please tell me whether the answer is £700 or £650 for this question?

You are working on the final accounts of a business with year end 31 Oct X4. The allowance for doubtful debts of £50 was relating to a specific debt provision which was paid during the year. At year end 31 Oct X4 you are required to allow for doubtful debts of 1% of remaining trade receivables. Would the figure in the adjustment columns be £700 or £650 as the £50 was recovered during the year? If the £50 had been paid wouldn't the £50 provision have been removed (debited)?

Extract from Extended Trial Balance

Sign In or Register to comment.