1. in question 12.6, what does it mean by a charge of $? What is the difference between a charge of $ and a credit of $?
2. Are allowances for receivables and irrecoverable debts all credited to statement of profit and loss?
3. In question 10.8, why is gas supplier account calculated in the answer? It seems like you only have to add all the expenses recorded in the bills/invoices.
Thank you very much for you help!
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9y ago#11. A charge is another word for an expense.
2. No - we debit the SOPL with the cost of irrecoverable debts and any increase in the allowance.
3. You don't need a t-account, but you do need to account for the accruals when calculating the total expense.
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