| |
Solution 10.4
|
DR |
Bad Debts
Account |
CR |
|
|
|
€ |
|
|
€ |
|
2003 |
Debtors |
7,750 |
31/12/03 |
P
& L a/c |
7,750 |
|
|
|
|
|
|
|
|
|
|
7,750 |
|
|
7,750 |
|
2004 |
Debtors |
4,500 |
|
|
|
|
31/12/04 |
Debtors |
2,500 |
31/12/04 |
P
& L a/c |
7,000 |
|
|
|
7,000 |
|
|
7,000 |
|
|
|
|
|
|
|
|
DR |
Provision
for Bad Debts Account |
CR |
|
|
|
€ |
|
|
€ |
|
31/12/03 |
P
& L a/c |
2,000 |
1/1/03 |
Bal
b/d |
14,000 |
|
31/12/03 |
Bal
c/d |
12,000 |
|
|
|
|
|
|
14,000 |
|
|
14,000 |
|
|
|
|
31/12/04 |
Bal
c/d |
12,000 |
|
|
|
|
31/12/04 |
P
& L a/c (specific) |
6,000 |
|
31/12/04 |
Bal
c/d |
19,075 |
31/12/04 |
P
& L a/c (increase) |
1,075 |
|
|
|
19,075 |
|
|
19,075 |
|
|
|
|
1/1/05 |
Bal
b/d |
19,075 |
|
DR |
Provision
for Discount Account |
CR |
|
|
|
€ |
|
|
€ |
|
31/12/03 |
Bal
c/d |
6,840 |
31/12/03 |
P
& L a/c |
6,840 |
|
|
|
|
1/1/04 |
Bal
b/d |
6,840 |
|
31/12/04 |
Bal
c/d |
7,453 |
31/12/04 |
P
& L a/c |
613 |
|
|
|
7,453 |
|
|
7,453 |
|
|
|
|
1/1/05 |
Bal
b/d |
7,453 |
Statement of financial position Extract
|
|
2003 |
|
2004 |
|
|
€ |
€ |
|
€ |
€ |
|
Debtors |
240,000 |
|
|
267,500 |
|
|
Less
bad debt provision |
(12,000) |
|
|
(19,075) |
|
|
Less
discount provision |
(6,840) |
221,160 |
|
(7,453) |
240,972 |
|
|
|
|
|
|
|
|