ACCAF3(11-13)学生.pptVIP

Chapter 12 Irrecoverable debts and allowances Objectives: Understand the meaning of the terms “ irrecoverable debts “ and “allowance for receivables” Prepare the bookkeeping entries about irrecoverable debts and allowance for receivables Identify the impact of irrecoverable debts on the income statement ,and the allowance for receivables on the balance sheet Irrecoverable debts Definition An irrecoverable debt is a debt which is not expected to be paid. (2) Bookkeeping entries( P207) When incurred dr. irrecoverable debts cr. Receivable control account ★ irrecoverable debts a/c belongs to expenses account ,it will be post to IE a/c at the end of accounting period. When irrecoverable debts written off and subsequently paid dr. cash a/c cr. Irrecoverable debt expense 2 allowance for receivables Definition(p208) An allowance for receivables is an estimate of the percentage of debts which are not expected to be paid. (2) Bookkeeping entries: “Allowance for receivables ”account appears in B/S (是应收帐款的抵减帐户，在资产负债表中列于应收帐款下面，通过应收帐款-坏账准备得出应收帐款的净值） Principle : ★ only movement on the receivable allowance is debited or credited to irrecoverable debts in the I/S . Steps(P215) Calculate the new allowance required closing allowance for receivable =closing recevable x allowance rate Compare it with the existing balance on the allowance account.（比较应提数与当期坏帐准备的帐面余额） 3.Calculate increase or decrease required If a higher allowance is required （应提的坏帐准备坏帐准备的期初余额） dr. irrecoverable debts expense cr. Allowance for receivable If a lower allowance is required （应提坏帐准备坏帐准备的余额） dr. Allowance for receivable cr. irrecoverable debts expense Specific allowance Specific allwance is an allowance against a particular receivable Accounting entry: dr. irrecoverable debt expense cr. Allowance for receivable—special Note : When general allowance is concerned , receivable amount exclude sp