Assignment # 2
Financial Accounting (MGT 101)
QUESTION: 1
1. Calculate new provision.
| Debtors | 205,000 |
| Write off | 5000 |
| Debtors – Write off Bad debts 205,000 – 5000 = 200,000 | |
| New Provision (200,000 * 5/100) | 10,000 |
2. Calculate the amount of Provision for doubtful debts to be appeared in Profit and
Loss Account.
| Bad debts | 8,000 |
| Add : Write off | 5,000 |
| | 13,000 |
| Add : New Provision | 10,000 |
| | 23,000 |
| Less : old Provision | 6,000 |
| Provision for doubtful debt | 17,000 |
3. Calculate the amount of Sundry debtors to be shown in Balance Sheet.
| Debtors | 205,000 |
| Less : Write off bad debts | 5,000 |
| | 200,000 |
| Less : New Provision | 10,000 |
| Sundry debtors in balance sheet | 190,000 |
QUESTION: 2
Mr. Ali
For the year ended on 30 June 2010
(Debtors Control Account)
| Date | No | Narration | Debit | Date | No | Narration | Credit |
| | | Opening balance | 25,000 | | | Discount allowed | 2,000 |
| | | Credit sale | 50,000 | | | Receipts from debtors | 35,000 |
| | | | | | | Bad debts | 10,000 |
| | | | | | | Sales return | 5,000 |
| | | | | | | Closing balance | 23,000 |
| | | Total | 75,000 | | | Total | 75,000 |
Posts
