WAEC Accounting 2025 Theory — Question 6

Model answer

Item | Meaning | Debit | Credit (a) Increase in provision for doubtful debts | Amount set aside for unrecoverable debts has increased (additional expense) | Profit and Loss Account | Provision for Doubtful Debts Account (b) Decrease in provision for doubtful debts | Amount set aside for unrecoverable debts has decreased (additional income) | Provision for Doubtful Debts Account | Profit and Loss Account (c) Provision for discount on debtors | Discount likely to be allowed to debtors who pay promptly | Provision for Discount Allowed Account | Debtors Account (d) Provision for discount on creditors | Discount expected to be received from suppliers for prompt payment | Creditors Account | Provision for Discount Received Account (e) Provision for depreciation | Amount set aside for wear and tear of a fixed asset | Provision for Depreciation Account | Fixed Asset remains at cost; depreciation charged to P&L