irrecoverable debt & allowance for receivables. receivables, irrecoverable, allowances...

Irrecoverable Debt & Allowance for Receivables

Receivables, Irrecoverable, Allowances

Receivables 31/12/12 100,000

- Irrecoverable Debt (6,000)

Adjusted Receivables 94,000

Specific Allowance 4,000 (4,000)

90,000

General Allowance 3% x 90,000 (2,700)

NET Receivables 87,300

Allowance for Receivables

1/1/12 Balance 8,000

31/12/12 Specific 4,00031/12/12 General 2,700 6,700

Change -1,300

Receivables A/C

Date Details Total Date Details Total

31/12/12 Balance 1 100,000 31/12/12 Irrec. Debt 2 6,000

………… 31/12/12 Balance c/d 94,000

100,000 100,000

1/1/13 Balance b/d 94,000

Irrecoverable Debt A/C

Date Details Total Date Details Total

31/12/12 Receivable 2 6,000 31/12/12 P&L 6,000

6,000 6,000

Allowance for Receivables A/C

Date Details Total Date Details Total

31/12/12 -P&L 1,300 1/1/12 Balance b/d 8,000

31/12/12 Balance c/d 6,700 31/12/12 + P&L ..……..

8,000 8,000

1/1/13 Balance b/d 6,700

Statement of Financial Position

Current Assets

Net Receivables 87,300

Statement of Comprehensive Income

Less Expenses

Irrecoverable Debt 6,000

Change in Allowance for Receivables 1,300

Irrecoverable Debt RecoveredReceivables 31/12/12 100,000

+ Irrecoverable Recovered 1,000

- Irrecoverable Debt (6,000)

95,000

- Bank Receipts 1,000

Adjusted Receivables 94,000

Specific Allowance 4,000 (4,000)

90,000

General Allowance 3% x 90,000 (2,700)

NET Receivables 87,300

Allowance for Receivables

1/1/12 Balance 8,000

31/12/12 Specific 4,00031/12/12 General 2,700 6,700

Change -1,300

Receivables A/C

Date Details Total Date Details Total

31/12/12 Balance 100,000 31/12/12 Irrec. Debt 6,000

Recovered 1,000 Bank 1,000

………….. 31/12/12 Balance c/d 94,000

101,000 101,000

1/1/13 Balance b/d 94,000

Irrecoverable Debt A/C

Date Details Total Date Details Total

31/12/12 Receivable 6,000 31/12/12 P&L 6,000

6,000 6,000

Allowance for Receivables A/C

Date Details Total Date Details Total

31/12/12 -P&L 1,300 1/1/12 Balance b/d 8,000

31/12/12 Balance c/d 6,700 31/12/12 + P&L ..……..

8,000 8,000

1/1/13 Balance b/d 6,700

Irrecoverable Debt Recovered A/CDate Details Total Date Details Total

31/12/12 Receivables 1,000

Bank A/C

Date Details Total Date Details Total

31/12/12 Receivables 1,000

Statement of Financial Position

Current Assets

Net Receivables 87,300

Statement of Comprehensive Income

Less Expenses

Irrecoverable Debt 6,000

Change in Allowance for Receivables 1,300