Allowance for Doubtful Debt

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

DOUBLE ENTRY FOR BEGINNERS – PART 3

DOUBLE ENTRY FOR BEGINNERS SALES SCENARIOS- PART 3 Financial Accounts are built on the double entry principle which states that:  FOR EVERY DEBIT ENTRY, THERE MUST BE A CORRESPONDING CREDIT ENTRY; So, in posting any transaction into your accounts, you always need to identify which account needs to be debited and which account needs to … Read More