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Anonymous
Aug 4

show: i. The Bad Debts Account and the Provision for Doubtful Debts Account for each of the two years. 12 marks ii. The relevant extracts from the Balance Sheet as at 31 December 2011 and 2012? ?

A business started trading on 1 January 2011. During the two years ended 31 December 2011 and 2012 the following Account on the dates stated:  debts were written off to the Bad Debts  31 August 2011  Patrick  Sh.850  Evans  Rahab  Sh.1,400  30 September 2011 28 February 2012 30 November 2012  31 August 2012  Mary David  Sh.1,800 Sh.600  Sh. 2,500  On 31 December 2011 there had been a  total of debtors remaining of sh.405,000. It was decided to make a provision for doubtful debts of sh.5,500.  On 31 December 2012 there had been a  total of debtors remaining of sh.473,000. It was decided to make a provision for doubtful debts of sh.6,000.

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