Acca financial Accounting (FA) Study Text ac ca (FA)

What will be the net balance included in the statement of financial 

position for receivables at 30 April 20X5? 

$________ 

33  As at 31 March, Phil had receivables of $82,500. Following a review of 

receivables, Phil decided to write off the following irrecoverable debts: 

John  

$1,000 

Beatrice   $500 

Peter  

$3,250 

Phil adjusted the allowance for receivables to $1,250. The current balance 

on the allowance for receivables account is $2,000. Phil also received 

$300 from a debt that had been written off at an earlier date. 

What was the charge to the statement of profit or loss in respect of 

irrecoverable debt expense and the entry on the statement of 

financial position for net receivables at 31 March? 

$

Statement of profit or loss 

Statement of financial position 

34  At the start of the year Joe had an allowance of $700 against receivables. 

During the year, of this amount, $450 went bad and $150 was received; 

the balance remained unpaid at the year end. Subsequently, a further debt 

of $170 went bad. At the year-end Joe decided that an allowance for 

receivables of $340 was required.