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  • A21A2528 Bad Debts

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    Khalidatunnur Farhanah
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    The document summarizes accounting entries and calculations related to accounts receivable, bad debts, and profit or loss for the year ended June 30, 20x3. It shows a write-off of RM 500 in bad debts, recovery of some bad debts, RM 40,000 in doubtful debts calculated as 2% of receivables, and a net profit of RM 40,500 after expenses including the RM 500 bad debt amount.

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    A21A2528 bad debts

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    The document summarizes accounting entries and calculations related to accounts receivable, bad debts, and profit or loss for the year ended June 30, 20x3. It shows a write-off of RM 500 in bad debts, recovery of some bad debts, RM 40,000 in doubtful debts calculated as 2% of receivables, and a net profit of RM 40,500 after expenses including the RM 500 bad debt amount.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    2 views2 pages

    A21A2528 Bad Debts

    Uploaded by

    Khalidatunnur Farhanah
    The document summarizes accounting entries and calculations related to accounts receivable, bad debts, and profit or loss for the year ended June 30, 20x3. It shows a write-off of RM 500 in bad debts, recovery of some bad debts, RM 40,000 in doubtful debts calculated as 2% of receivables, and a net profit of RM 40,500 after expenses including the RM 500 bad debt amount.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Acc receivable RM 200 000

    Doubtful debts RM 6000

    i) Debts of RM 500 are to be written off as bad debt:

    June 2015 Details Debit Credit


    Debts Sales 500
    500

    Journal entries :

    June 2015 Details Debit Credit


    bank 1000
    1000

    2% x RM 200 000

    = RM 40 000

    Profit or loss the year 30 June 20x3

    ii) Gross Pofit :

    revenues :

    Details Debit Credit


    Bad debts recovered x
    x

    Less expenses :

    Details Debit Credit


    Bad debts 500
    (500)

    iii)

    30 June Details Debit Credit


    Along trading

    Perofit and loss account 30 June 20x3

    Debit Credit
    Profit :
    Add revenues xx xx
    xx
    Less expenses : xx

    Bad debts : 500


    Doubtful debts : 40 000

    Net profit : 40 500

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