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1.what is the treatment for irrecoverable debt previously written off recovered?
#as far I know,it will effect:
Dr.Bank a/c
Cr.Irrecoverable debt expense a/c
#does it effect receivables a/c??
2.what is the treatment for allowance for receivables previously included recoverd?
#please explain about this,and does it effect receivables a/c?Have you not watch the free lectures on irrecoverable and doubtful debts, because this is all explained in the lectures? (I cannot type out the whole of the lectures here!)
An irrecoverable debt recovered does not affect receivables – the debt does not exist if it has been written off as irrecoverable.
There is no such thing as an allowance recovered. If there was an allowance because the debt was doubtful, then the receivable remained in the books. When the cash is received then Dr Cash Cr Receivables as normal.
(When calculating the allowance required at the end of the year, then this receivable will not longer be included in the allowance required because it is no longer doubtful).I do suggest that you watch our lectures. They are a complete course for Paper F3 and cover everything you need to pass the exam well.
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