O-LevelAccountingAccounting procedures7707/11 · May/June 2017 · Q101 Mark
Ahmed decided to write off an amount owing from Yasmin as a bad debt. Which entries will Ahmed make? when the debt is written off account to be debited account to be credited at the end of the financial year account to be debited account to be credited A bad debts Yasmin income statement bad debts B income statement sales sales bad debts C sales income statement bad debts sales D Yasmin bad debts bad debts income statement
Awhen the debt is written off: account to be debited (bad debts), account to be credited (Yasmin); at the end of the financial year: account to be debited (income statement), account to be credited (bad debts)
Bwhen the debt is written off: account to be debited (income statement), account to be credited (sales); at the end of the financial year: account to be debited (sales), account to be credited (bad debts)
Cwhen the debt is written off: account to be debited (sales), account to be credited (income statement); at the end of the financial year: account to be debited (bad debts), account to be credited (sales)
Dwhen the debt is written off: account to be debited (Yasmin), account to be credited (bad debts); at the end of the financial year: account to be debited (bad debts), account to be credited (income statement)
✓ Correct answer
A: when the debt is written off: account to be debited (bad debts), account to be credited (Yasmin); at the end of the financial year: account to be debited (income statement), account to be credited (bad debts)
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