Do you understand the movement of money in the cash book? Dr- Receipts Cr- Payments When money is received the bank balance increases and when money is paid out, the bank balance reduces. Simple hey!!! Lets see how you get on with this simple scenario: · Where there is an opening debit bank balance of … Read More

ALLOWANCE FOR DOUBTFUL DEBT: Scenario: You work for Mandels Ltd and the debtors balance at the end of the year is £48,100 and the company makes a general allowance for doubtful debt of 2%. Where there is an existing allowance for doubtful debt of £1,406 at the beginning of the year, what will be the … Read More