Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ANSWERRRR ASAPPPPP PLEASEEEEE. ANSWER MUST BE TYPEDDDD Cik Ziana's business has an accounting year ending on 30 November. As of 1 December 2018, her ledger
ANSWERRRR ASAPPPPP PLEASEEEEE. ANSWER MUST BE TYPEDDDD
Cik Ziana's business has an accounting year ending on 30 November. As of 1 December 2018, her ledger contained the following accounts: Dr _Account receivable RM 200,000 Provision for doubtful debts Cr RM 8,000 The accounts receivable as of 30 November 2019 was RM 180,000. This includes an amount of RM 3,000 owed by William which was thought to be irrecoverable. It also includes amounts of RM 2,400 owed by Gina, RM 1,000 owed by Xin Hui and RM 2,000 owed by Freddi, all which are regarded as doubtful debts. During the year ended 30 November 2020, Gina was declared bankrupt. Xin Hui disappeared and cannot be traced. Freddi paid his debt in full. A debt of RM 3,000 owed by Takeshi that is included in the accounts receivables on 30 November 2020 proved to be bad. In addition, the amount of RM 2,800 owed by Ridzuan is regarded as doubtful. The accounts receivable as of 30 November 2020 was RM 240,000, before considering bad debts. It has been the policy to provide specific provision for doubtful debts and a general provision for doubtful debts of 2% based on the account receivable at year end. Required to PREPARE: (i) Provision for doubtful debts account as of 30 November 2019 and 2020 (7 marks) (ii) The extract in Statement of Comprehensive Income for the two years ending 30 November (8 marks) (iii) Statement of Financial Position as at those dates (10 marks) Cik Ziana's business has an accounting year ending on 30 November. As of 1 December 2018, her ledger contained the following accounts: Dr _Account receivable RM 200,000 Provision for doubtful debts Cr RM 8,000 The accounts receivable as of 30 November 2019 was RM 180,000. This includes an amount of RM 3,000 owed by William which was thought to be irrecoverable. It also includes amounts of RM 2,400 owed by Gina, RM 1,000 owed by Xin Hui and RM 2,000 owed by Freddi, all which are regarded as doubtful debts. During the year ended 30 November 2020, Gina was declared bankrupt. Xin Hui disappeared and cannot be traced. Freddi paid his debt in full. A debt of RM 3,000 owed by Takeshi that is included in the accounts receivables on 30 November 2020 proved to be bad. In addition, the amount of RM 2,800 owed by Ridzuan is regarded as doubtful. The accounts receivable as of 30 November 2020 was RM 240,000, before considering bad debts. It has been the policy to provide specific provision for doubtful debts and a general provision for doubtful debts of 2% based on the account receivable at year end. Required to PREPARE: (i) Provision for doubtful debts account as of 30 November 2019 and 2020 (7 marks) (ii) The extract in Statement of Comprehensive Income for the two years ending 30 November (8 marks) (iii) Statement of Financial Position as at those dates (10 marks)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started