• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Bad Debts and Bad Debts Recovered

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Bad Debts and Bad Debts Recovered

  • This topic has 3 replies, 2 voices, and was last updated 3 months ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 24, 2025 at 8:13 pm #716343
    upani
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    year ended 31st March 2021

    Trade Receivables 14,180
    Allowance for Trade Receivables 3,000

    As at 31st March 2021, there was a customer who had an outstanding balance of Rs.2.5 million was overdue for more than 360 days. This amount was already provided in the accounts. However, an amount of Rs.2.2 million was settled by the customer in April 2021 and the balance was decided to write-off as bad debts during the year ended 31st March 2021.

    The board of directors of the company approved the financial statements for issue on 30th May 2021.

    Sir, could you kindly specify the entries related to this adjustment?

    March 25, 2025 at 5:52 pm #716356
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    You enter the cash received in the normal way.

    You then write off the remaining balance by crediting receivables and debiting the irrecoverable debts expanse account.

    2.5m of the allowance is no longer needed and so debit the allowance and credit the irrecoverable debts expense account.

    Have you watched our free lectures on irrecoverable and doubtful debts?

    March 26, 2025 at 7:55 pm #716366
    upani
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    I actually watched them, but I got a bit confused with some parts.

    Thank you so much for the detailed explanation. That really helped me clarify my doubt.

    March 27, 2025 at 2:52 pm #716377
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Bad Debts and Bad Debts Recovered’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • adebusola on MA Chapter 1 Questions Accounting for Management
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • John Moffat on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)
  • o1lim on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in