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Answers to supplementary objective test questions

12.2 $770
Rent expense
$ $
01 Jun Balance b/f 160 01 Jun Balance b/f 190
In month Bank 680
Statement of profit or
In month loss 770
30 Jun Balance c/f 240 30 Jun Balance c/f 120
––––– –––––
1,080 1,080
––––– –––––

At the start of June there were 4 months prepaid – at the end of June there will
still be 3 months prepaid.

CHAPTER 13 – ACCOUNTING FOR IRRECOVERABLE DEBTS AND
ALLOWANCES FOR RECEIVABLES

13.1 A $3,383

$ Allowance $ Expense $

Receivables bal 29,100
Irrecov debt (4,450) 4,450

24,650

Specific Allow: ABC (675) 675
Specific Allow: DEF (375) 375

Specific Allow: GHI (708) 708
Allowance c/f 1,758

Allowance b/f 2,825
Decrease in allowance 1,067 (1,067)

Total expense 3,383

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