WAEC Accounting 2020 Objective — Question 5

Question 5 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.

The net figure for debtors in the balance sheet is (Provision for doubtful debts 1,000Cr; Bad debts 500Dr; Debtors 50,000Dr; Additional bad debts to be written off 500; New provision for doubtful debts to stand at 5% of debtors)

A. Le 47,025Correct
B. Le 46,550
C. Le 45,600
D. Le45,500

Explanation

New provision for doubtful debts = 5% x (50,000-500) = 2,475. Thus, net debtors = 50,000+1,000-500-500-2,475 = 47,025.

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