Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. pui fun set up business on 1 january 2017 as a pia

Pui Fun set up business on 1 January 2017 as a piano school operator. At...

70.2K

Verified Solution

Question

Accounting

Pui Fun set up business on 1 January 2017 as a piano school operator. At the end of the 1st year of business, 31 December 2017, the amount owing to her from customers totalled RM 13,140. After some consideration Pui Fun decided that, of these debts, a total of RM 740 was unlikely ever to be received and should be written off as bad. She decided to be prudent and make 4% general allowance against the remaining trade receivables. By 31 December 2018, Pui Funs trade receivables had increased to RM 16,800 and of these RM 3,000 were bad. Pui Fun decided that her general allowance for doubtful debts could be reduced to 2% of the remaining trade receivables. At 31 December 2019, Pui Funs debtors totalled RM 12,500. There were no debts that were considered bad but a specific allowance to be made against one debt of RM 700 and a general allowance of 2% to be continued on the remaining trade receivables.

(i) Provision for doubtful debts account and bad debts account for the year ended 31 December 2017, 2018 and 2019. (6 marks) (ii) Show the extract of Statement of Profit or Loss and Statement of Financial Position for the year ended 31 Dec 2019. (3 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students