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ACCA F3 Irrecoverable Debts and Allowances Example 1
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Thank!! :):)
Clear and very well explained. Really, very much helpful lecture.
Do you always have to take out the specific allowanc before taking out the general allowance?
Yeah, if you don’t then your general allowance figure will be wrong
(Y)….
just great….
馃檪
perfect lectures,
Fantastic lectures! Very well explained and easy to understnad..Thanks alot!!
good explanation
sir, i understand little bit from your last statement .so 660/= has not been minus from receivables 11910/= if not you are right and iam wrong, tell me more 11910-(660+810)=10440. we shall show 10440 in F/P .and 1470 all expense goes to I/S. than i cleared. thanks
sohail.
@sohailssaeed, No, only the MOVEMENT in the Provision Account will go to this year’s Statement of Income. The other 660 has already been expensed in years gone by
sir.
Detors Dr.11910 $
provsion for bad debts Cr.(in trial balance) 660$
addition information:
increase the provision for bad and doubtful debts by 810$
please explain me in written and easy form so that i can understand better.
@sohailssaeed, You do not say what it is you want to know!
I assume that you are taking the International variant of F3, in which case it is not debtors, but receivables. Also, it is not provision, but allowance.
Whichever variant you are taking, there is no such thing as a provision for bad and doubtful debts. The provision (or allowance) is only for doubtful debts.
The double entry is credit the allowance (provision) with 810 and debit the expense account with 810.
So in the Statement of Financial Position you will show receivables of 11810 less an allowance of 1470.
In the Income Statement there will be an expense of 810.
@johnmoffat, sir how you get 11810 .
according to my mind 660-810=150 receiveables 11910-150=11760 is that true.?for financial position.
i was practicing the financial position. this one difficultly came into being.
thanks
@sohailssaeed, pl see the Q again.
@sohailssaeed, I have seen the question, and what I wrote before is correct.
The question says to increase the provision by 810. This means that the provision will be 810 higher so 810 + 660 = 1470
There is no mention of changing the receivables and so they stay at 11910.
On the statement of financial position, you would show receivables of 11910 less the allowance (provision) of 1470.
first time this was taught in class, i looked morose, but now it all makes perfect sense.. thanks
Perfect…
I have a question, where did you get the 4100 irrecoverable debts in the income statement?
@acctyoung, it is the total of the two irrecoverable debts (2500 + 1600 ).
Have you looked at the answers on page 182 of the Course Notes?
@johnmoffat, ok…there is an answer…Thx!
its not working, pliz acknowledge me on what to do!!!!!!
its displaying a “stop” sign
very well explained!!!!! i.e. to say the least…….
Its Great…..
videos are gr8! … if you have trouble viewing, Then its most likely that the problem is on your side! ..
i can not watch the videos.some times i can.
nice lecture
good lecture………
really helpful lectures … but at 10:39 it stops 馃檨
can somone guide me why its not going ahead ?
moonkhan: problem is with your internet connection
wait for the video to load properly, then press play
perfect lectures