Professional Documents
Culture Documents
Exercise
1. During the year to 31 December 20X6,the following debts are found to be bad and are
written off on the dates shown:
9 March
T Wright, 86
30 May
S OConnor, 111
25 June
C Smith, 75
10 October
S Proctor, 39
Show the bad debts account and the effect on the profit and loss account for the year ended
31 December 20X6.
2. The following are the total figures for debtors at the end of each financial year. The
provision for doubtful debts is to be maintained at 4% of debtors at the year-end.
Value of debtors ()
20X1
12,000
20X2
15,000
20X3
14,000
3. On 1 July 20X6 there was a balance of 600 in the Provision for Doubtful Debts Account
and it was decided to maintain the provision at 5% of the debtors at each year-end. The
debtors at 30 June for the next three years were:
20X7
15,000
20X8
10,000
20X9
10,000
Show the provision for doubtful debts account for the period 1.7.X6 to 30.6.X9
4. As at 1 April 20X8 we were owed 650 from Paul Evans. On 26 July Evans was declared
bankrupt. A payment of 35p in the was received in full settlement. The remaining balance
was written off as a bad debt.
Write up the account of Evans, as it would appear in the Sales Ledger
5. In a new business during the year ended 31 December 20X5 the following debts are found
to be bad and are written off on the date shown:
28 February
27 August
17 September
N Johnston
M Johnson
D Scaife
87
32
112
Show the bad debts account for the year ended 31 December 20X5
6. The debtors figures below have been extracted from the end of year final accounts of Hope
Ltd, for a four year period:
20X1
4,000
20X2
6,000
20X3
6,000
20X4
3,000
The directors have decided to create a provision for doubtful debts equal to 4% of
outstanding debtors at the year-end.
Construct the provision for doubtful debts account for this period of time assuming no prior
provision existed in the books of Hope Ltd.