Untitled Presentation

Multiple Choice

What are Irrecoverable Debts and how do they relate to Set off/Contra Entries?

• Debts that can be recovered

• Debts that cannot be recovered

• Debts that are partially recovered

• Debts that are written off

Multiple Choice

What is the purpose of a journal in accounting?

• To record regular transactions

• To provide a summary of financial statements

• To document non-regular transactions

• To replace the ledger

Multiple Choice

What is irrecoverable debt?

• A debt that is expected to be paid

• A debt that the company believes will not be paid

• A debt that is disputed

• A debt that is easily recoverable

Multiple Choice

How does a company typically account for bad debt provisions?

• As an asset on the balance sheet

• As an expense on the income statement

• As a liability on the balance sheet

• As revenue on the income statement

Multiple Select

What are the accounting entries for irrecoverable debt? Tick all that apply.

• DR – Irrecoverable Debt a/c

• Dr – VAT a/c

• Cr – RLCA

• You can only record the VAT once the debt is more than 6 months old

Multiple Choice

What is recorded in the journal regarding irrecoverable debt?

• It is ignored

• It is recorded and then entered into accounts

• It is only noted in the ledger

• It is not recorded at all

Multiple Choice

What are set off or contra entries used for?

• To record sales only

• To record purchases only

• When a customer is also a supplier

• To manage inventory

Multiple Choice

The Purchases Day Book is used to record

• (a) all purchases of goods

• (b) all credit purchases of assets

• (c) all credit purchases of goods

• (d) all purchases of assets

Multiple Choice

If MidKent Ltd bought goods from the organisation on credit for a total of £375, how much does your organisation owe MidKent Ltd after they sold you back some bags for £650?

• £375

• £650

• £275

• £325

Open Ended

Why is an irrecoverable debt account needed?

Multiple Choice

What is the purpose of the Reconciliation process?

• To track expenses

• To manage cash flow

• To ensure accuracy in financial records

• To prepare tax returns

Poll

How confident do you feel about this topic now?

• Very confident
• Somewhat confident
• Not confident