Pacha Ltd has been trading for some years and makes up its accounts for the year ended 31st December. During the year ended 31st December 2020 it paid £7,200 in respect of insurance for the period from 1st April 2019 to 31st March 2020 and during the year ended 31st December 2021 it paid £9,600 in respect of insurance for the period from 1st April 2020 to 31st March 2021. What figure will appear in the income statement as the insurance expense for the year ended 31st December 2020? Select one: a. £8,600 Ob. £11,800 c. £9,000 d. £9,300
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- Ameera Enterprise had a balance on its allowance for doubtful debts of RM26,250 as at 31 December 2019. Allowance for doubtful debts was estimated at 5% on account receivable. On 31 December 2020, the balance of its net accounts receivable was RM550,000. Calculate the amount of doubtful debts to be shown in the statement of profit or loss for the year ending 31 December 2020A. Yaso plc is a manufacture company and its financial year ended at 31st December 2019. Total assets are £40m and net profit before tax is £12m. Yaso plc's trade receivables ledger includes a large number of customers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). Requirement: Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Yaso plc's trade receivables.A.Yasoplc is a manufacture company and its financial year ended at 31st December 2019. Total assets are £40m and net profit before tax is £12m.Yasoplc’s trade receivables ledger includesa large number ofcustomers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). •Describe substantive procedures the auditor should perform to obtainsufficientand appropriate audit evidence in relation toYasoplc’s trade receivables.
- COULD YOU PROVIDE SOME MORE DETAIL WHEN PROVIDING THE ANSWER, THANK YOU Question 1A. Yaso plc is a manufacture company and its financial year ended at 31st December 2019. Total assets are £40m and net profit before tax is £12m. Yaso plc’s trade receivables ledger includes a large number of customers. The year-end trade receivables balance is £4m (comparable to £2m in 2018) and the allowance for trade receivables is £400,000 (comparable to £600,000 in 2018). PART A Requirement:• Describe substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Yaso plc’s trade receivables. PART B. According to ISA 260, it is important for auditors to communicate throughout the audit with those charged with governance. PART B Requirement: • Explain why it is important for auditors to communicate with those chargedwith governance. • Identify three examples of matters which the auditor may communicate to those chargedwith governance.The information in the following table relates to the accounts receivable and allowance for doubtful debts of Prime Moving Ltd. The company’s accounting period ends on 30 June each year. The company policy is to provide an allowance for doubtful debts at the rate of 3% of accounts receivable at 30 June each year. The balance of the Allowance for Doubtful Debts account on 1 July 2019 was $14 000. The following information is given for the year ending 30 June 2020and 30 June 2021, in order to determine the bad debts expense for each year and the balance of allowance for doubtful debts at the end of each year. 2020 2021 Accounts receivable (ending balance at 30 June) $560,000 $630,000 Bad debts written off during the year 8,400 0 Allowance for doubtful debts at 1 July (Beginning of the period) (a) (d) Bad debts expense for the year (b) (e) Allowance for doubtful debts at 30 June (Ending balance) (c) (f) Required: b) Discuss how the…The information in the following table relates to the accounts receivable and allowance for doubtful debts of Prime Moving Ltd. The company’s accounting period ends on 30 June each year. The company policy is to provide an allowance for doubtful debts at the rate of 3% of accounts receivable at 30 June each year. The balance of the Allowance for Doubtful Debts account on 1 July 2019 was $14 000. The following information is given for the year ending 30 June 2020and 30 June 2021, in order to determine the bad debts expense for each year and the balance of allowance for doubtful debts at the end of each year. 2020 2021 Accounts receivable (ending balance at 30 June) $560,000 $630,000 Bad debts written off during the year 8,400 0 Allowance for doubtful debts at 1 July (Beginning of the period) (a) (d) Bad debts expense for the year (b) (e) Allowance for doubtful debts at 30 June (Ending balance) (c) (f) Required: a) Determine the…
- The information in the following table relates to the accounts receivable and allowance for doubtful debts of Prime Moving Ltd. The company’s accounting period ends on 30 June each year. The company policy is to provide an allowance for doubtful debts at the rate of 3% of accounts receivable at 30 June each year. The balance of the Allowance for Doubtful Debts account on 1 July 2019 was $14 000. The following information is given for the year ending 30 June 2020and 30 June 2021, in order to determine the bad debts expense for each year and the balance of allowance for doubtful debts at the end of each year. 2020 2021 Accounts receivable (ending balance at 30 June) $560,000 $630,000 Bad debts written off during the year 8,400 0 Allowance for doubtful debts at 1 July (Beginning of the period) (a) (d) Bad debts expense for the year (b) (e) Allowance for doubtful debts at 30 June (Ending balance) (c) (f) Required: c) Show the relevant…The information in the following table relates to the accounts receivable and allowance for doubtful debts of Prime Moving Ltd. The company’s accounting period ends on 30 June each year. The company policy is to provide an allowance for doubtful debts at the rate of 3% of accounts receivable at 30 June each year. The balance of the Allowance for Doubtful Debts account on 1 July 2019 was $13,000. The following information is given for the year ending 30 June 2020 and 30 June 2021, in order to determine the bad debts expense for each year and the balance of allowance for doubtful debts at the end of each year. 2020 2021 Accounts receivable (ending balance at 30 June) $520,000 $585,000 Bad debts written off during the year 7,800 0 Allowance for doubtful debts at 1 July (Beginning of the period) (a) (d) Bad debts expense for the year (b) (e) Allowance for doubtful debts at 30 June (Ending balance) (c) (f) Required: Determine the…Liberty Corporation reported the following financial statements: Assume all sales are on credit. During 2019, Liberty’s days’ sales in receivables ratio Was (amounts rounded) a. 34 days. b. 30 days. c. 32 days. d. 28 days
- Canucks plc has trade receivables of £424,400 at 31 December 2021. At 31 December 2020 the allowance for doubtful debts was £10,600.For 31 December 2021, the accountant wants the allowance for doubtful debts to be 4% of trade receivables. What is the charge to profit and loss account for 31 December 2021?a) £6,376b) £16,796cc) £27,576 d) £10,600On 31 December 2019, a company's receivables totalled £400,000 and allowance for receivables of £50,000 had been brought forward for the 1 December 2019. It was decided to write off debts totalling £38,000. The allowance for receivables was to be adjusted to the equivalent of 10% of the receivables as at 31 December 2019 What charge for receivables expenses should appear in the company’s statement of profit and loss for the year ended 31 December 2019?The entity has collected P20,000 interest during 2020. While P3,700 is recorded in interest receivable on its December 31, 2020 statement of financial position and P10,000 on December 31, 2019. The interest revenue to be reported in the Company’s statement of comprehensive income for 2020 is?