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Balance the account and bring down the balance at 1 April 2025. AY Limited Provision for doubtful debts account Date Details $ Date Details $ (b) Write up the provision for doubtful debts account in AY Limited’s ledger for the year ended 31 March 2025.
See it on the paper →Explain what is meant by ‘a provision for doubtful debts’. (c) (i)
See it on the paper →Advise Jenny whether or not she should create and maintain a provision for doubtful debts. Justify your answer by providing two arguments for and two arguments against maintaining a provision for doubtful debts.
See it on the paper →Prepare the provision for doubtful debts account for the year ended 31 March 2025. Balance the account and bring down the balance at 1 April 2025. Jasmine Provision for doubtful debts account Date Details $ Date Details $
See it on the paper →one way Jasmine may reduce the possibility of irrecoverable debts. (ii)
See it on the paper →Complete the table by placing a tick (✓) to show what effect creating a provision for doubtful debts would have on Ben’s profit for the year, trade receivables and cash at bank. Profit for the year Trade receivables Cash at bank Increase No effect Decrease
See it on the paper →Prepare the journal entry to write off the amount owing by Rachel. A narrative is required. Addo Journal Date Details $ $
See it on the paper →Prepare the provision for doubtful debts account for the year ended 30 September 2023. Balance the account at 30 September 2023 and bring down the balance at 1 October 2023. Logan Provision for doubtful debts account Date Details $ Date Details $
See it on the paper →B Limited does not require a provision for doubtful debts The directors of B Limited are also the shareholders. They plan to expand the company. They are considering whether to issue debentures or ordinary shares. REQUIRED
See it on the paper →Prepare Stalla’s provision for doubtful debts account for the year ended 31 December 2022. Balance the account at 31 December 2022 and bring down the balance at 1 January 2023. Stalla Provision for doubtful debts account Date Details $ Date Details $
See it on the paper →State two reasons why Stalla maintains a provision for doubtful debts. Stalla charges depreciation at 25% per annum, using the reducing balance method. She charges a full year’s depreciation in the year a vehicle is purchased and none in the year it is sold. On 31 December 2022, Stalla sold a vehicle for $9500. The veh...
See it on the paper →List three ways in which PG could reduce the possibility of irrecoverable debts.
See it on the paper →State two factors PG should consider when setting the provision for doubtful debts.
See it on the paper →Prepare a journal entry to write off the amount owed by LW. A narrative is required. NT General Journal Date Details Debit $ Credit $ In addition to the irrecoverable debt of LW, other irrecoverable debts of $4100 were written off during the year ended 31 August 2021. Trade receivables at 31 August 2021 were $91 500 an...
See it on the paper →Prepare an extract from the expenses section of NT’s income statement for the year ended 31 August 2021. NT Extract from income statement for the year ended 31 August 2021
See it on the paper →Prepare the following ledger accounts for the year ended 31 August 2022. Bring down the balance on 1 September 2022, where appropriate. NT ledger accounts PB account Date Details $ Date Details $ Irrecoverable debts account Date Details $ Date Details $ Provision for doubtful debts account Date Details $ Date Details $...
See it on the paper →Prepare the journal entry to record the irrecoverable debt. A narrative is not required. KA Limited Journal Details Debit $ Credit $ KA Limited maintains a provision for doubtful debts. REQUIRED
See it on the paper →Matching
See it on the paper →Calculate the increase or decrease in the provision for doubtful debts at 30 September 2020.
See it on the paper →A provision for doubtful debts account was required. This also caused problems for many candidates, even though similar questions have appeared on past papers. Once again, extraneous items were often included, the most common ones being trade receivables and irrecoverable debts. The opening balance brought down from the previous year ($300) should have appeared on the debit side. At the end of the...
— Examiner report, October/November 2023, 7707/23 Q3(b) (Cambridge)
Stating a reason why the service company did not require a provision for doubtful debts proved quite challenging. Incorrect responses included statements about the company not having credit sales, not having any trade receivables, and getting cash in hand at the end of each job.
— Examiner report, October/November 2023, 7707/23 Q5(c)(ii) (Cambridge)
Candidates were required to use information provided to prepare a provision for doubtful debts account. Those candidates who were familiar with this topic were able to earn goods marks, but many candidates found this question difficult. Common errors included: • Inclusion of extraneous items such as the trade receivables at the start and end of the year. • Transferring the whole of the year-end p...
— Examiner report, May/June 2023, 7707/21 Q2(a)(i) (Cambridge)
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