help with accounting work please?
I am doing a trial balance and trading account. In the trial balance I have bad debts of £4215 I have two particular things I have to do: further bad debts to be written off £3114 - would i deduct this amount from the bad debts I got? Lastly provision for doubtful debts established is 2% - would I add this 2% to the bad debt amount? Please help, it's for a coursework I'm doing I've done most parts of the accounting work..just can't understand the parts i mentioned above..so asking for advice.x
Other - Business & Finance - 3 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
The reason that you are doing this involves the word "work" Therefore I suggest that you get on and do some of this strange thing called "work" which is why you are doing the course that you are on.
Answer 2 :
This is a general answer: First, write off the known bad debts of 3114 Debit the Provision for Doubtful Accounts Credit Accounts Receivable. Now, look at the balance in Accounts Receivable. Take 2% of that number. That's what the balance should be in the Provision for Doubtful Accounts. Now you need to make whatever adjustment in the Provision for Doubtful Accounts to get it to be that 2% balance. It should be a credit balance. The offset to the adjustment to the Provision for Doubtful Accounts is the Bad Debt account. The balance right now in the Bad Debts account of 4215 is immaterial. When you are done with the 2 steps above, what ever the balance in Bad Debts is whatever it is. The whole point of the allowance method for accounting for bad debts is to make the balance of accounts receivable as accurate as possible(you write off any KNOWN bad debts.) You also ALLOW or PROVISION for unknown noncollectable accounts by making the Provision for Bad Debts account equal to 2% of the Accounts Receivable balance. How does that sound?
Answer 3 :
Step one: write off bad debts of 3114 Dr Allowance for doubtful debts (3114) Cr Accounts receivable (3114) Step two: Adjustment of bad debts based on 2% of A/R Dr Bad debts Expense ((A/R-3114)*0.02) Cr Allowance for doubtful debts ((A/R-3114)*0.02)
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Monday, May 28, 2012
Monday, May 14, 2012
what the difference between aat and degree in accounting?
what the difference between aat and degree in accounting?
Higher Education (University +) - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
ATA is a qualification for accounting support staff. it is not one of the professional bodies for Accountants If you have a degree in accounting I would try for qualification in the main bodies Chartered Accounts. Chartered and Certified Accountants Management Accountants
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Higher Education (University +) - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
ATA is a qualification for accounting support staff. it is not one of the professional bodies for Accountants If you have a degree in accounting I would try for qualification in the main bodies Chartered Accounts. Chartered and Certified Accountants Management Accountants
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Monday, May 7, 2012
If there are insufficient funds can a declared dividend be paid after the end of the accounting period.?
If there are insufficient funds can a declared dividend be paid after the end of the accounting period.?
Other - Business & Finance - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
The dividend is only declared after the end of the accounting period when it is known that a profit has been made. If you mean that profit was made, dividends declared but now there is insufficient cashflow to pay the dividends then that is different. The dividends are a liability of the company once they have been declared so it would be up to the company to negotiate delayed payment if they don't have the funds.
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Other - Business & Finance - 1 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
The dividend is only declared after the end of the accounting period when it is known that a profit has been made. If you mean that profit was made, dividends declared but now there is insufficient cashflow to pay the dividends then that is different. The dividends are a liability of the company once they have been declared so it would be up to the company to negotiate delayed payment if they don't have the funds.
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Tuesday, May 1, 2012
what subjects(qualifications) o you need to do Accounting?
what subjects(qualifications) o you need to do Accounting?
Careers & Employment - 8 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Maths GCSE, A Level and a Maths Degree would be a start.
Answer 2 :
C.P.A. or Certified Public Accountant. You can get this or equiv- ilant at two year schools.
Answer 3 :
Maths for a start. Then a humour bypass.
Answer 4 :
You would need to get enought A levels to go to university and do an accountancy course couples with several other degree courses. It would probably be better to do an Honours Degree then go to be become an associate member of the accountancy organisation.
Answer 5 :
To do Accountancy at uni, you just need A levels, i applied after college and got an offer, that was without an A level in accountancy. If you dont fancy Uni (like i decided i didnt), lots of big firms offer an apprenticeship. For this you usually need really good A Level Grades, no one in particular though. I had Politics, biology and maths. The fact i had a maths A Level didnt make a difference though. The apprenticeship includes a kind of block release, where you go to college and study AAT (Association of Accounting Techincian). There are people at my firm, who did a degree in a completely opposite direction, such as geography or chemistry, the fact they had a degree (might i add a very good one) was what got them the job. So in conclusion, you dont need to have certain subjects, as long as you can show the accountancy firms/Uni/College your dedicated and smart, thats usually enough.
Answer 6 :
it depends on what qualifications you've got,what you rally want to do and what you're doing now.the basics are 5 O'levels,including maths and 2 A'levels,preferably accounting,management of business/business studies,maths,geography,economics(so long as they are not arts or sciences).you could also opt for proffessional courses like CIMA,ACCA,CIS or other local courses. you could also do articles with other accounting organisations/firms that allow you to do articles. i dont know whether i've been of help to you.you could try asking at any college or university,depending on where you want to study accounting-if that's what you want to do,they do help you decide or you could get a prospectus form any college or university.They usually show courses on offer and what is required for you to do that course or programme.
Answer 7 :
Need more info. Do you mean bookkeeping or accountancy? Do you want to be an auditor, tax specialist or general accountant? They all require pretty much the same basic qualifications before enrolment, but the particular qualification you choose will determine which course you take and which professional body suits your purpose.
Answer 8 :
this depends entirely on your situation. Any degree will do, it doesn't have to be finance related to enter for Accountancy exams (check out acca.co.uk). If you mean at Uni, check out some different uni's prospectus's and they will give you entry requirements, usually grades rather than specific subjects. Don't get bogged down in the specifics of what you want to specialise in just yet. Uni and ACCA/CIMA/CAT all have compulsary subjects to begin with so you can figure that out as you go along. But be ready for a challenge. My ACCA results are out next week and I am scared! Good luck with it though.
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Careers & Employment - 8 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Maths GCSE, A Level and a Maths Degree would be a start.
Answer 2 :
C.P.A. or Certified Public Accountant. You can get this or equiv- ilant at two year schools.
Answer 3 :
Maths for a start. Then a humour bypass.
Answer 4 :
You would need to get enought A levels to go to university and do an accountancy course couples with several other degree courses. It would probably be better to do an Honours Degree then go to be become an associate member of the accountancy organisation.
Answer 5 :
To do Accountancy at uni, you just need A levels, i applied after college and got an offer, that was without an A level in accountancy. If you dont fancy Uni (like i decided i didnt), lots of big firms offer an apprenticeship. For this you usually need really good A Level Grades, no one in particular though. I had Politics, biology and maths. The fact i had a maths A Level didnt make a difference though. The apprenticeship includes a kind of block release, where you go to college and study AAT (Association of Accounting Techincian). There are people at my firm, who did a degree in a completely opposite direction, such as geography or chemistry, the fact they had a degree (might i add a very good one) was what got them the job. So in conclusion, you dont need to have certain subjects, as long as you can show the accountancy firms/Uni/College your dedicated and smart, thats usually enough.
Answer 6 :
it depends on what qualifications you've got,what you rally want to do and what you're doing now.the basics are 5 O'levels,including maths and 2 A'levels,preferably accounting,management of business/business studies,maths,geography,economics(so long as they are not arts or sciences).you could also opt for proffessional courses like CIMA,ACCA,CIS or other local courses. you could also do articles with other accounting organisations/firms that allow you to do articles. i dont know whether i've been of help to you.you could try asking at any college or university,depending on where you want to study accounting-if that's what you want to do,they do help you decide or you could get a prospectus form any college or university.They usually show courses on offer and what is required for you to do that course or programme.
Answer 7 :
Need more info. Do you mean bookkeeping or accountancy? Do you want to be an auditor, tax specialist or general accountant? They all require pretty much the same basic qualifications before enrolment, but the particular qualification you choose will determine which course you take and which professional body suits your purpose.
Answer 8 :
this depends entirely on your situation. Any degree will do, it doesn't have to be finance related to enter for Accountancy exams (check out acca.co.uk). If you mean at Uni, check out some different uni's prospectus's and they will give you entry requirements, usually grades rather than specific subjects. Don't get bogged down in the specifics of what you want to specialise in just yet. Uni and ACCA/CIMA/CAT all have compulsary subjects to begin with so you can figure that out as you go along. But be ready for a challenge. My ACCA results are out next week and I am scared! Good luck with it though.
Read more other entries :
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