[saheer1]

the irrecoverable balance needs to be written of so this is deducted from the RLCA of £90350
£90350 – £1950= £88400

closing allowance of is 1.5% of £88400= £1326
– the closing receivables allowance in the sfp will be £87074 (£88400 – £1326)

– the entry of £1320 of cash will have nothing to do with RLCA because it has already been written off last year so they have accounted for that not being received.

hope this helps.

[saheer1]

the irrecoverable balance needs to be written of so this is deducted from the RLCA of £90350
£90350 – £1950= £88400

closing allowance of is 1.5% of £88400= £1326
– the closing receivables allowance in the sfp will be £87074 (£88400 – £1326)

– the entry of £1320 of cash will have nothing to do with RLCA because it has already been written off last year so they have accounted for that not being received.

hope this helps.

[Author]

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