A-LevelAccountingBad Debts and Provision for Doubtful DebtsOct/Nov 2009Paper 1 Q31 Mark

A business makes a provision for doubtful debts equal to 5% of its debtors. At 31 March 2008 the provision for doubtful debts was $850. At 31 March 2009 the debtors after the provision for doubtful debts were $17 100. How much is the increase in the provision for doubtful debts for the year ended 31 March 2009?

Q: What topic does this question test?

This question tests Bad Debts and Provision for Doubtful Debts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$45

B$50

C$850

D$900

✓ Correct Answer

The correct answer is B: $50

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Bad Debts and Provision for Doubtful Debts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2009 examination, Paper 1 Variant 2.

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