Use the following information to answer the question below
Provision for doubtful debts——1,000Cr
Bad debts——–500Dr
Debtors——-50,000Dr
Additional bad debts to be written off—–500
New provision for doubtful debts to stand at 5% of debtors
The provision for doubtful debts to be charged to the Profit and Loss Account is
- A. Le 2,500
- B. Le 2,475
- C. Le 2,450
- D. Le 1,000
Use the following information to answer the question below
Provision for doubtful debts——1,000Cr
Bad debts——–500Dr
Debtors——-50,000Dr
Additional bad debts to be written off—–500
New provision for doubtful debts to stand at 5% of debtors
The net figure for debtors in the balance sheet is
- A. Le 47,025
- B. Le 46,550
- C. Le 45,600
- D. Le 45,500
A credit purchase of N200 from Osae was posted to the account of Osei. This is an error of
- A. principle.
- B. commission
- C. omission
- D. original entry
The double entry for interest on drawings by a partner is: debit
- A. Partner's Current Account; credit Appropriation Account
- B. Profit and Loss Account: credit Interest Account
- C. Appropriation Account credit Partner's Current Account
- D. Interest Account: credit Profit and Loss Account
When bank charges are discovered in a bank statement, the adjustment is effected in the
- A. bank reconciliation statement
- B. cash book
- C. suspense account
- D. bank loan account
A debit entry in a fixed asset account represents
- A. an increase in the fixed asset account.
- B. a decrease in the fixed asset account
- C. a profit on disposal of the fixed asset
- D. a loss on disposal of the fixed asset