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11.19 Which of the following is/are examples of payables of a business?
1 An estimation of tax owed to the tax authority for the year just ended
2 $500 owed to a supplier for invoiced goods
3 An estimation of probable repair costs under warranty claims
A 1 and 2 only
B 1 and 3 only
C 2 only
D 1, 2 and 3Source : Bpp FFA kit
Sir, I have confusion why is not answer d
And we are taking account of certain liabilities why not 1 is a liability ?*And if we are taking account*
11.11 At 1 January 20X1, there was an allowance for receivables of $3,000. During the year, $1,000 of debts were written off as irrecoverable, and $800 of debts previously written off were recovered. At
31 December 20X1, it was decided to adjust the allowance for receivables to 5% of receivables which
are $20,000.
What figure should be included in the statement of profit or loss as the receivables expense for the year?
$__________ DEBIT / CREDITSource Bpp
And Sir do not we calculate allowance after net offing irrecoverable debt ( 20,000- 1,000)?
but in bpp allowance is calculated as 20000*5% , i think it should be 19000*5% .Thankyou!
11.19 The question asks for examples of payables. The estimate of the tax owing is an accrual, not a payable.
11.11 The irrecoverable debt was written off during the year. So the balance on receivables of 20,000 at the end of the year has already had the 1,000 removed.
Understood , thankyou sir
Payable is one form of liability , i thought liability is payable .
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