Aidil Enterprise

3. Bad Debt Double Entry

Dr Bad debt expens RM500

Cr Account Receivaible RM500

Allowance for Doubtful Debt

Allowance for Doubtful Debt Account

Date Particular RM Date Particular RM

Bal c/d 750 1/4/2021 Bal b/d 600
Increase in AFDD 150
750 750

Increase in AFDD

Dr Bad debt RM150

Cr Allowance for Doubtful Debt RM150

4. Depreciation :-
i. Fixture and fitting = (RM7,000 -0) x 10% = RM700

Dr Depreciation RM700
Cr Accumulated Depreciation RM150

ii. Motor Vehicle = (RM25,000 – 0) x 20% = RM5,000

Dr Depreciation RM5,000
Cr Accumulated Depreciation RM5,000

iii. Machinery = (RM45,000 – RM9,000) x 10% = RM3,600

Dr Depreciation RM3,600
Cr Accumulated Depreciation RM3,600
 Hermas Trading

3. Bad Debt Double Entry

Dr Bad debt expense RM800

Cr Account Receivable RM800

Allowance for Doubtful Debt = % x (AR - Bad debt written off)

= 2% x (RM22,500 – RM8,000)
= RM434

Allowance for Doubtful Debt Account

Date Particular RM Date Particular RM

Bal c/d 434 1/1/2020 Bal b/d 1,500
Increase in AFDD 1,066
1,500 1,500

Decrease in AFDD

Dr Allowance for Doubtful Debt RM1,066

Cr Bad debt RM1,066

4. Depreciation :-
i. Motor Vehicle = (RM95,000 - 0) x 20% = RM19,000

Dr Depreciation RM19,000
Cr Accumulated Depreciation RM19,000

ii. Furniture and fitting = (RM60,000 – 0) x 15% = RM9,000

Dr Depreciation RM9,000
Cr Accumulated Depreciation RM9,000

iii. Machinery = (RM60,000 – RM12,000) x 10% = RM4,800

Dr Depreciation RM4,800
Cr Accumulated Depreciation RM4,800