A firm may be able to recover a debt that was previously written off. The following entries will be made if this happens: Debit – Debtors Credit – credit bad debts recovered account – to restore the bad debt recoverable. N/B: This should be the amount to be recovered. Debit – Cashbook Credit – Debtors…
Read MoreIn some cases a firm may create a provision for discounts allowable in addition to provision for doubtful debts. This happens where a firm anticipates that some of the debtors may take up cash discounts offered by the firm. The accounting treatment is similar to accounting for provision for doubtful debts. The provision should be…
Read MoreSome debtors may not pay up their accounts for various reasons e.g. a debtor may go out of business. When a debtor is not able to pay up his/her account this becomes a bad debt. Therefore the business/firm should write it off from the accounts and thus it becomes an expense that should be charged…
Read MoreA prepaid expense is an expense that is not payable but cash has already been paid. A prepaid expense should not be charged in the P&L a/c but should be carried forward to the next financial period and should be shown in the statement of financial position as a current asset. The accruals and expenses items…
Read MoreQualities of an Effective research Topic A good research topic has the following qualities: It is researchable: That means it is a subject where the research instruments can be easily formulated and the study population sampled. The objectives that will be formulated based on the topic are measurable. It captivates the interest of the researcher:…
Read MoreThis is income that is not yet due but cash has been received for it. This happens where an income is payable in advance e.g. Rent payable 3 months in advance. A prepaid income should not be reported in the current financial period but should be carried forward and reported in the period it relates…
Read MoreRevenue and costs must be recognized as they are earned or incurred, not as money is received or paid. They must be matched with one another so far as their relationship can be established or justifiably assumed, and dealt with in the profit and loss account of the period to which they relate. Therefore all…
Read MoreResearch Methods Topic Selection The term “topic” refers to subject, issue or area under discussion. The topic (subject) one selects to research is essential in the success of the research project. This is mainly because one’s interest in the topic will sustain the research. If a researcher is interested in a particular area, he/she will…
Read MoreRESEARCH METHODS FORMS OF QUALITATIVE RESEARCH Qualitative research include the following: Ethnographies, which are observations of groups. Phenomenological studies which study subjects over a period of time through developing relationships with them and reporting findings based on research experiences. Case studies which use various data to investigate the subject over time and by activity. Quantitative…
Read MoreA firm may dispose off its non-current assets in the following 3 ways: Selling the asset. Asset being written-off from damage/accident/theft. Asset is scrapped/not used anymore. When an asset is disposed and is no longer used by the firm, the appropriate entries should be made in the asset account and the total depreciation provided to…
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