Mr. Okonkwo’sbooks of account shows the information for four years ended 31st December, 2000. The...

Mr. Okonkwo’sbooks of account shows the information for four years ended 31st December, 2000. The balance of debtors and bad debts were given for the four years.

Debtors Bad

Balance Debts

N N

31st December, 1997 40,000 2,000

31st December, 1998 30,000 1,000

31st December, 1999 50,000 2,500

31st December, 2000 60,000 3,000

Provision for doubtful debts brought forward at 1st January, 1997 was N600.

Mr. Okonkwo makes provision for doubtful debts at the rate of 10% on total debtors outstanding after deducting bad debts for the period.

You are required to prepare the following accounts for the years ended 31st December, 1997, 1998, 1999 and 2000.

(a) Bad Debts Account

(b) Provision for doubtful debts Account

(c) Profit and Loss Account

(d) Balance Sheet (extract)?

In Accounting
1 Answers Available
Asked by Dolapo on 29th February, 2024