A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2022 · Q71 Mark
Which statement is correct?
AThe balance on the irrecoverable debts account is carried down to the next accounting period.
BThe balance on the irrecoverable debts account is treated as an expense in the income statement.
CThe balance on the provision for doubtful debts account is calculated before the deduction of irrecoverable debts.
DThe balance on the provision for doubtful debts account is not included in a trial balance.
✓ Correct answer
B: The balance on the irrecoverable debts account is treated as an expense in the income statement.
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