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WAEC Financial Accounting 1994 Question 20

Question 20

Bad Debts and Provisions

Use the following information:
Year to 31st December | Debtors after bad debts written off | Doubtful debts
1984 | ₦12,000 | ₦100
1985 | ₦15,000 | ₦130
1986 | ₦14,000 | ₦115

In 1986, debtors figure will appear in the Balance Sheet as

  1. A.₦13,655
  2. B.₦13,755
  3. C.₦13,885
  4. D.₦14,000
  5. E.₦14,115.
Show the answer and explanation

Answer: C (₦13,885)

Explanation

14,000 − provision 115 = ₦13,885.