Irrecoverable Debts & Control Accounts

What is Provision for Doubtful Debts

• Asset

• Liability

• Expense

• Loss

Provision for Dountful Debts is calculated on

• Trade receivable

• Trade receivable - Irrecoverable Debts

• Irrecoverable Debts

• Current Asset

Which accounting principle is applicable for Provision for doubtful debts

• Matching

• Prudence

• Matching & Prudence

• None

Control accounts is prepared for

• Trade Receivable

• Trade Payable

• Trade Receivable & Trade Payable

• None

Provision for Doubtful Debts is recorded in

• Control Accounts

• Income Statement

• Sales Ledger

• Sales Journal

Credit Control refers to

• establishing credit limit

• Monitoring of customers account

• Obtaining credit reference from new customers

• All 3

When old provision is more than new provision

• Debit Income Statement Credit Provision

• Debit Provision Credit Income Statement

• Debit Irrecoverable Debts Credit Provision

• Debit Trade Receivable Credit Provision

Recovery of Debts written off means

• Money received from old Trade Receivable

• Money received from new Trade Receivable

• Money received from a debt earlier treated as Irrecoverable debt

• Money received from writing back excess provision

Contra in Control Accounts mean

• Same person is a debtor as well as a creditor

• Cash deposited into bank

• Cash withdrawn from bank

• Debtors account balance is adjusted with Creditors account balance

Sales figure in Control account is taken from

• Sales Ledger

• Sales Journal

• Sales Account

• Cash Book