Geeproperties owns a block of flats, and earns a living by rental income and general dealing....
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Geeproperties owns a block of flats, and earns a living by rental income and general dealing. On 1 January 2006 his ledger included the following balances. Debtors' account Provision for doubtful debts account The balance on the provision account consisted of the following. GH₂75,000 GH¢2,235 (e) GH¢ 1.500 735 2.235 Specific provision of 100% against the debt of Charles Sulemana, a tenant General provision of 1% against remaining debts During the year ended 31 December 2006 the following occurred. (a) Charles Sulemana paid Geeproperties GHe 150 and then vanished without trace to a new world, leaving no assets. (b) Another tenant, Antonio Banderas, who owed GH 900, fell into a river and was also found to have died penniless. (c) Azuma Nickson returned from total obscurity and an amount of GH¢450 which Geeproperties had written off in 2003. (d) Credit sales for the year amounted to GHe 167,400 and cash received from debtors (other than Sulemana and Azuma) totaled GH¢150,000 At 31 December 2006 Geeproperties decided to provide in full against a disputed debt of GHe 1.200 owed by Kwesi Otoo Pratt, and to maintain the 1% general provision on other debtors. Requirement Write up Geeproperties's debtors' account, provision for doubtful debts account and bad debts expense account for the year ended 31 December 2006. Geeproperties owns a block of flats, and earns a living by rental income and general dealing. On 1 January 2006 his ledger included the following balances. Debtors' account Provision for doubtful debts account The balance on the provision account consisted of the following. GH₂75,000 GH¢2,235 (e) GH¢ 1.500 735 2.235 Specific provision of 100% against the debt of Charles Sulemana, a tenant General provision of 1% against remaining debts During the year ended 31 December 2006 the following occurred. (a) Charles Sulemana paid Geeproperties GHe 150 and then vanished without trace to a new world, leaving no assets. (b) Another tenant, Antonio Banderas, who owed GH 900, fell into a river and was also found to have died penniless. (c) Azuma Nickson returned from total obscurity and an amount of GH¢450 which Geeproperties had written off in 2003. (d) Credit sales for the year amounted to GHe 167,400 and cash received from debtors (other than Sulemana and Azuma) totaled GH¢150,000 At 31 December 2006 Geeproperties decided to provide in full against a disputed debt of GHe 1.200 owed by Kwesi Otoo Pratt, and to maintain the 1% general provision on other debtors. Requirement Write up Geeproperties's debtors' account, provision for doubtful debts account and bad debts expense account for the year ended 31 December 2006.
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Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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