Forum Replies Created
- Posts
Thank you! and Sorry sir actually It’s a question from very old past papers that I found online, that is the reason the wordings are those from previous years. Although, as you told me I use the wordings that are supposed to be used now, viz. Irrecoverable debts and allowance for receivables.
Hi Sir,
It’s an MCQ question again, please explain.
A trial balance at 30 April 2003, before making end of year adjustments showed:
Trade debtors Dr. $17800
Allowance for doubtful debts CR.$580At 30 April 2003, it was decided to write off a bad debt of $800 and to make a provision for doubtful debts of 2% of trade debtors. During the year, an amount of $200 was received from a customer relating to a debt that was written off in the year ended 30 April 2002.
What was the total bad and doubtful debts expense for the year ended 30 April 2003?
A $360
B $560
C $940
D $1140The correct answer is $360 however with my calculations I’m getting $340. Kindly please explain
please explain me whether this calculation is right or not? It’s the same question I asked you first
sales $160 000
less cost of goods sold:
Inventory at 30 June 2010 $47 000
Purchases (your arithmetic is fine) $143 000Less stock at 5 Nov 2010 (70 000)
The answer is 120,000 which we deduct from sales obviously and thus, the gross profit is $40,000.
Cost of stock lost in fire : $ ( 70 000 – 12000) = $58 000
And Yes I have watched the lecture, still this question left my confused.Thank you very much for you help ?
I have one more question of Incomplete records viz. calculating the profit at the year end.
while preparing the statement of affairs, should any new personal asset brought into the business during the year be added in assets and deducted from the capital at the year-end?
The answer in my book is something like this.
sales $160 000
less cost of goods sold:
Inventory at 30 June 2010 $47 000
Purchases (your arithmetic is fine) $143 000Less stock at 5 Nov 2010 (70 000)
The answer is 120,000 which we deduct from sales obviously and thus, the gross profit is $40,000.
Cost of stock lost in fire : $ ( 70 000 – 12000) = $58 000
And Yes I have watched the lecture, still this question left my confused.Thank you very much for you help 🙂
I’m sorry, but I’m confused by one question for suspense account;
When Jayesh extracted a trial balance from his books at 31 December 2010 he found it that it did not balance… Jayesh later found this error.
Repairs to a machine, $3500, had been posted to machinery at cost account as $5300.
What would be the journal entry for this and why?
so you’re saying, whatever side the balance in the TB is more, we should find the difference and post it on the side where the balance was less?
No, I have not mistyped the question. There is a mistake in the question which left me confused. However, bad debts of 420 were recovered earlier in January 2011 and now new bad debts of 650 arose at the end of the year at 31 May 2011. then why did you calculate the difference between both bad debts? I mean wouldn’t 240 be credited in the income statement. As we 10 and 650 (new bad debt) will be on the debit side of the profit and loss account while 420 would be on the credit side of the profit and loss account, wouldn’t we add 240 on the credit side in the P&L account to balance it?
Thank you very much for you assistance.