Question

Name of Account
Bad Debts
Provision for Bad Debt
Debtors
VI SU JUUw palu carriage 1,000 and Installation charge 2,000. (4)
Extracts of Trail Balance
As at 31 March 2014
4F
Debit
Credit
700
1700
26500
Adjustment:
a) Write off Further Bad Debts 500
b) Create a provision for Discount 2% on Debtor
c) Create a provision for Doubtful Debts 5% on Debtor.
Cautions.​

Answer 1

Answer:

Bad Debts ----> Nominal Account

PBD -->   Nominal Account

Debtors --> Personal Account  --> Current Asset

Carriage --> Direct Expense

Installation Charges --> Direct Exp

Explanation: