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personal use. The owner decided to write off additional bad debts of R M 4 , 5 0 0 when she discovered one of the
personal use.
The owner decided to write off additional bad debts of when she discovered one of the accounts receivables was in financial difficulties.
Provision for doubtful debts is to be made at on the outstanding accounts receivable.
It is the company's policy to depreciate its noncurrent assets as follows:
i Plant and machinery on reducing balance method.
ii Motor vehicles on straight line method.
iii. Office equipment on straight line method.
The electricity bill of RM was still accrued for the period.
Advertising expenses amounting to RM was still owing.
The rental income is worth RM per month.
Salaries paid in advance amounted to RM
Required:
a Prepare Statement of Comprehensive Income of Joy Trading for the year ended December
marks
b Prepare Statement of Financial Position of Joy Trading as at December
marks
c List TWO possible circumstances that might lead a company to writeoff a debt as bad debt.
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