The following balances stood in the books of Penelope at 1 January 19_2.

Additional information:
(1) Penelope sub-lets parts of her premises for £50 a month.
(2) The electricity bill for the final quarter is estimated to be £170.
(3) At the end of the year Penelope wishes to make a provision for doubtful debts of 4% of debtors. Debtors at 31 December 19_2 stand at £2000.

Prepare:

(a) the following ledger accounts in Penelope’s books:
electricity (3 marks)
insurance (3 marks)
rent receivable (3 marks)
provision for doubtful debts (3 marks)

(b) relevant extracts from the final accounts for the year ended 31 December 1922.

Transcribed Image Text:

Electricity Insurance Rent receivable Dr Cr 50 95 50 70 Provision for doubtful debts During 19_2 the following transactions took place: 3 Mar. Paid insurance. This covers the 570 period 1 Feb. to 31 July. 2 Apr. Paid electricity 200 4 Apr. Received rent 150 4 July Paid electricity 180 6 July Received rent 150 3 Sept. Paid insurance. This covers the 600 8 Oct. period 1 Aug. to 31 Jan. 19_3. Received rent 150 9 Oct. Paid electricity 150