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7 marksBad Debts and Provisions for Doubtful Debts

CSEC Principles of Accounts · January 2016 · Paper 2 · Question 4(a)(i)

The Gargar Mell Company maintains a Provision for Bad and Doubtful Debts of 5% of year-end Accounts Receivable, with given balances for 2013 and 2014.

Starting with the balance on 1 January 2013, prepare the Provision for Bad and Doubtful Debts Account for the two years ended 31 December 2014, showing dates and balancing the account at the end of each year.

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Other parts of this question

  1. 4(a)(ii)Prepare a Balance Sheet extract for Gargar Mell Company for 2014 showing the effect of the provision on Accounts Receivable.[3 marks]
  2. 4(b)Prepare the Rent Expenses Account for the year ended 31 December 2015.[6 marks]
  3. 4(c)(i)State under which heading in the Balance Sheet of the previous year the $2 500 would have been recorded.[1 mark]
  4. 4(c)(ii)Prepare the Commission Revenue account for the year ending 31 December 2015.[3 marks]

More practice: the rest of this paper · more Bad Debts and Provisions for Doubtful Debts questions · all CSEC Principles of Accounts past papers