ADDITIONAL REVISION QUESTIONS FOR BAD DEBTS ACCOUNTING

Question 1
A business starts on 1 January 20X2 and its financial year end is 31 December annually. A
table of the accounts receivables, the bad debts written off and the allowance for doubtful
debts at the end of each year is given. The double entry accounts and the extracts from the
final accounts follow.
Years

Accounts
Receivables (after
bad debts written
off)

Bad debts written

off

Allowance for
doubtful debts

2010
2011
2012
2013
2014

RM 80,000
RM 70,000
RM 50,000
RM 60,000
RM 40,000

RM4,000
RM5,000
RM8,000
RM6,000
RM8,000

3%
4%
5%
4%
5%

Prepare the bad debts and allowance for doubtful debts accounts, as well as the income
statement and balance sheet extracts for the years ending 31 December 2010, 2011, 2012,
2013 and 2014.

Question 2
A business starts on 1 January 20X2 and its financial year end is 31 December annually. A
table of the accounts receivables, the bad debts written off and the allowance for doubtful
debts at the end of each year is given. The double entry accounts and the extracts from the
final accounts follow.
Years

Accounts
Receivables (before
bad debts written
off)

Bad debts written

off

Allowance for
doubtful debts

2010
2011
2012
2013
2014

RM 80,000
RM 70,000
RM 50,000
RM 60,000
RM 40,000

RM4,000
RM5,000
RM8,000
RM6,000
RM8,000

3%
4%
5%
4%
5%

Prepare the bad debts and allowance for doubtful debts accounts, as well as the income
statement and balance sheet extracts for the years ending 31 December 2010, 2011, 2012,
2013 and 2014.
Question 3
A business had always made a provision for doubtful debts at the rate of 3% of accounts
receivables. On 1 January 20X7, the provision brought forward from the previous year was
RM160.
During the year to 31 December 20X7, the bad debts written off amounted to RM840.
On 31 December 20X7, the total remaining accounts receivables is RM7,400 and the usual
provision for doubtful debts is to be made.
You are required to show:
a)
b)
c)
d)

The Bad Debts Account for year 20X7.

The Allowance for Doubtful Debts Account for year 20X7.
Income Statement extracts for year 20X7.
Balance Sheet extracts for year 20X7.

Question 4
A business had always made a provision for doubtful debts at the rate of 6% of accounts
receivables. On 1 January 2012, the provision for this, brought forward from the previous
year, was RM380.
During the year to 31 December 2012 and 31 December 2013, the bad debts written off
amounted to RM360 and RM 530 respectively.
On 31 December 2012 and 31 December 2013, the remaining accounts receivables totaled
RM8,800 and RM7,500 respectively, and the usual provision for doubtful debts is to be made.
You are required to show:
a) The Bad Debts Account for both years.
b) The Allowance for Doubtful Debts Account for both years.
c) Income Statement extracts for both years..
d) Balance Sheet extracts for both years.