Provision for bad and doubtful debt - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 2010

Use the information below to answer questions
Sundry debtor..................N20,000
Provision for bad debts........N500
Provision for bad debt at 4% of sundry debtors.
Determine the provision for bad debts to profit and loss account?

A. N500
B. N820
C. N1300
D. N300

Question 7:

• JAMB 2010

Use the information below to answer questions
Sundry debtor..................N20,000
Provision for bad debts........N500
Provision for bad debt at 4% of sundry debtors.

Calculate the provision to be taken to the balance sheet?

A. N780
B. N800
C. 1200
D. N200