Day: November 24, 2021

A business makes a provision for doubtful debts equal to 5% of its debtors.

At 31 March 2020 net debtors were shown in the Balance Sheet as £17 100.

At 31 March 2021 the balance on its Sales Ledger Control account was £19 000. In the year ended 31 March 2021 a bad debt of £800 had been written off.

How much should be debited in the Profit and Loss Account for the year ended 31 March 2021 for the provision for doubtful debts?

Select ONE answer:

1. £10
2. £50
3. £55
4. £95

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct –
3. Not correct
4. Not correct

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