Can any one help??

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:32AM in AAT student discussion
Can any one help me with this question?

Write up the following accounts for 2005, 2006 & 2007
- Provision for doubtful debts:adjustment
- Provision for doubtful debts

Debtors balances @ 31 Dec 05 £105,200
2.5% provision for doubtful debts created @ 31 Dec05
Debtors balances @ 31 Dec 06 £115,600
2.5% provison for doubtful debts adjusted in line with the change in the level of debtors at 31 Dec 06
Debtor balance @ 31 Dec 07 £110,200
2.5% provision for doutful debts adjusted in line with the change in the level of debtors @ 31 Dec 07

Note: Ignore VAT relief on bad debt write off


Thank You.
Gem. x :D

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any one help??

    Hi Gem.

    Quite straightforward.

    For 2005, your provision is 2.5% of the debtors.

    For the next two years, you calculate 2.5% of the debtors figure and post the INCREASE/DECREASE.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any one help??

    edited - scott explains things better than me!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Can any one help??

    Thanks,
    Think my brain has stopped working today, keep making silly mistakes

    Thanks again
    Gem x :D

Categories

Privacy Policy