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Final revision

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Final revision

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • May 31, 2015 at 8:19 am #250809
    rustamrakhmatov27
    Member
    • Topics: 156
    • Replies: 127
    • ☆☆☆

    sir, why when a customer goes bankrupt and we made previously allowance, we debitting Expense and crediting TR because allowance made is adjusted at the y/e.
    why cant we just write write off the allowance too. Because it becomes like empty slot of information in accounts.

    May 31, 2015 at 11:06 am #250896
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    You can, but (a) you are not asked for t-accounts; (b) it makes it all more complicated; and (c) there is no empty slot – whatever happens during the year the allowance at the end of the year is that that is required at the end of the year.

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