Extracts from the trial balance of Ludwig,a limited liability company, for the year ended 30 April 20X6 are shown below: $000 $000 Trade payables 11,200 Plant and machinery 14,000 Plant and machinery accumulated depreciation 1 May 20X5 5,600 Capital 1,000 Allowance for receivables 1 May 20X5 2,300 Trade receivables 34,200 Opening inventory 3,000 Rent 2,120 Purchases 16,000 i) The directors have agreed to adjust the allowance for receivables to 5% of outstanding balances. 1. The impact of the movement in the allowance for receivables for the year ended 30 April 20X6 will? A. Increase B. No impact C. Decrease 2. The net profit for the year by? A. $590 B. $1,710 C. $0 3. The trade receivables balance to be shown on the statement on financial position is
Extracts from the
$000 $000
Trade payables 11,200
Plant and machinery 14,000
Plant and machinery accumulated
Capital 1,000
Allowance for receivables 1 May 20X5 2,300
Trade receivables 34,200
Opening inventory 3,000
Rent 2,120
Purchases 16,000
i) The directors have agreed to adjust the allowance for receivables to 5% of outstanding balances.
1. The impact of the movement in the allowance for receivables for the year ended
30 April 20X6 will? A. Increase B. No impact C. Decrease
2. The net profit for the year by? A. $590 B. $1,710 C. $0
3. The trade receivables balance to be shown on the statement on financial position is?
Step by step
Solved in 3 steps
