Financial Accounting
Accounting Tutorial Question Topic 2 Week 5
Question 1
Encik Abbul has a sundry shop business registered under the name of Prudential Enterprises. The following is the summarised version of the bad debts, doubtful debts and the A/Receivables accounts of his business start in 2011. (The accounting period of the business is similar to the normal calendar year) Year | Account Receivables | Bad debts already written off during the year | Allowance for doubtful debts (percentage of outstanding receivables) | 2011 | 395,000 | 3,500 | 1.5% | 2012 | 420,000 | 6,000 | 1.5% | 2013 | 500,000 | 1,000 | 1.5% |
i) Journalise the transaction for year 2011,2012 and 2013 a) Bad Debt b) Allowance for doubtful debts
ii) Prepare Comprehensive Income Statement (extract) and Statement of Financial Position (extract) for the 3 years.
Question 2
A business, which started trading on 1st January 2011, adjusted its provision for bad debts at the end of each year on a percentage basis, but each year the percentage rate is adjusted in accordance with the current economic climate. The following details are available for the three years ended 31 December 2011, 2012 and 2013.
Year | Bad debts written off year to 31 December | Debtors at 31 December | Percentage provision for bad debts | | RM | RM | RM | 2011 | 1,240 | 41,000 | 4 | 2012 | 2,608 | 76,000 | 6 | 2013 | 5,424 | 88,000 | 5 |
a) Prepare bad debts accounts for each of the three years. b) Provision for bad debts accounts for each of the three years. c) Balance sheet extracts as at 31 December 2011, 2012 and
Question 1
Encik Abbul has a sundry shop business registered under the name of Prudential Enterprises. The following is the summarised version of the bad debts, doubtful debts and the A/Receivables accounts of his business start in 2011. (The accounting period of the business is similar to the normal calendar year) Year | Account Receivables | Bad debts already written off during the year | Allowance for doubtful debts (percentage of outstanding receivables) | 2011 | 395,000 | 3,500 | 1.5% | 2012 | 420,000 | 6,000 | 1.5% | 2013 | 500,000 | 1,000 | 1.5% |
i) Journalise the transaction for year 2011,2012 and 2013 a) Bad Debt b) Allowance for doubtful debts
ii) Prepare Comprehensive Income Statement (extract) and Statement of Financial Position (extract) for the 3 years.
Question 2
A business, which started trading on 1st January 2011, adjusted its provision for bad debts at the end of each year on a percentage basis, but each year the percentage rate is adjusted in accordance with the current economic climate. The following details are available for the three years ended 31 December 2011, 2012 and 2013.
Year | Bad debts written off year to 31 December | Debtors at 31 December | Percentage provision for bad debts | | RM | RM | RM | 2011 | 1,240 | 41,000 | 4 | 2012 | 2,608 | 76,000 | 6 | 2013 | 5,424 | 88,000 | 5 |
a) Prepare bad debts accounts for each of the three years. b) Provision for bad debts accounts for each of the three years. c) Balance sheet extracts as at 31 December 2011, 2012 and