Y10 SA Unit-13 and 14

Which statement about a debts recovered account is correct?

• The account is used when an amount, previously written off, is received from a customer.

• The account is used when doubtful debts are recovered.

• The balance of the account is debited to the income statement at the end of the year.

• The balance of the account is shown in the statement of financial position.

Nula’s financial year ends on 31 December. She maintains a provision for doubtful debts of 5% of trade receivables. On 1 January 2021, the provision amounted to $800. On 31 December 2021, trade receivables owed $13 400, of which $600 was regarded as irrecoverable. How much was the provision for doubtful debts on 1 January 2022?

• $600

• $640

• $660

• $670

• Droghba paid Kalou by cheque after taking a cash discount.

• Droghba paid Kalou by cheque after taking a trade discount.

• Kalou paid Droghba by cheque after taking a cash discount.

• Kalou paid Droghba by cheque after taking a trade discount.

A book-keeper made the following ledger entry:

Account debited= Bank

Account credited= Debts recovered

Which transaction has been recorded?

• A credit customer has paid his account by the due date.

• A late payment has been received for a debt not yet written off.

• A payment has been received for a debt that had been written off.

• An irrecoverable debt has been written off.

Which statement is true?

• Bad debts are deducted from trade receivables after the provision for doubtful debts is calculated.

• Bad debts are deducted from trade receivables before the provision for doubtful debts is calculated.

• Bad debts are only written off if there is no provision for doubtful debts.

• Provision is only made for doubtful debts if no bad debts have been written off in the year.

• $3040

• $3200

• $3610

• $3800

• $1560 credit

• $1560 debit

• $1720 credit

• $1720 debit

• $163 credit

• $163 debit

• $337 credit

• $337 debit

Which statement about a bank reconciliation statement is correct?

• It includes items recorded by the trader not yet recorded by the bank.

• It is a copy of the trader’s account as it appears in the books of the bank.

• It is sent by the bank to the trader at regular intervals.

• It summarises the bank columns in a trader’s cash book.

• $248 credit

• $248 credit

• $332 credit

• $332 debit