Accounts - Principles of Accounts Past Questions and Answers

To write off bad debt, debt?

Halal Limited with three departments has a total of N7,200,000 as net debtors for the year ended 31/12/97.
The company's policy provides for 15% bad debt annually. Which of the following represents the total balance of debtors before adjustment?

Gross profit in the branch adjustment account is transferred to the branch?

Given:
...............................Jan.2003.........Dec. 2003
Provision for bad debt........N1000
Debtors..........................................N20000
Bad debt to be written off.......................N2000
The provision for bad debt stands at 10% of debtors. How much is to be charged to profit and loss account as provision for bad debt?

The gross profit disclosed in the branch stock adjustment account represents?