accounting adjustments

bristoleno17

hello i have a big trouble when i try to adjust this tips
-allowance for doubtful debts needs adjusting to 2% of outstanding trade receivables
- The depreciation charge for the year has been calculated at £26,000 instead of the correct figure of £25,500
- A receipt from a customer for £650 had been debited to the bank and also debited to the SLCA

thanks for your help!

bristoleno17

PeterC

Doubtful debts:
Assume that allowance for doubtful debts (ADD) was £1,000 and needs to become £1,200
The ADD account currently has a Cr balance of £1,000
Cr ADD to increase this to £1,200
Dr ADD adjustment account

Depreciation:
The original transactions was
Dr Depreciation charge £26,000
Cr Accumulated depreciation £26,000
Both these were £500 too much, so
Cr Depreciation charge £500
Dr Accumulated depreciation £500

Receipt from customer
£650 debited to SLCA should have been credited to SLCA
The trial balance will be out by £1,300
Fix the SLCA by crediting it with £1,300
The £1,300 debit goes to the suspense account

see also
https://drive.google.com/file/d/1sSuBFryxnhktkH1iU1LgvP1f3JqZR0sT/view?usp=sharing

PeterC

Thank you for providing the balances
Depreciation charge: this looks like a clerical error, it should be £25,500

SLCA:
Receipt from customer:
Cr SCLA £1,300 (see above)

Bad debt of £2,600:
Dr Irrecoverable debts £2,600
Cr SLCA £2,600

SLCA becomes 113,900 - 1,300 - 2,600 = £110,000
2% of this is £2,200, so Allowance for Doubtful Debts (ADD) should be £2,200, not £440 (difference = £1,760)
and
Cr ADD Adjustment £1,760
Cr ADD £1,760