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Questions on Accounting Paper 1

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Can someone help me to solve these Questions.Pls show your workingsor explanations. Thanks


Q1) A business makes a provision for doubtful debts equal to 5 % of its debtors.
At 31 March 2008 the provision for doubtful debts was $850.
At 31 March 2009 the debtors after the provision for doubtful debts were $17 100.
How much is the increase in the provision for doubtful debts for the year ended 31 March 2009?
A $45 B $50 C $850 D $900


Q2)At 31 March the balance sheet of a company included the following.

trade debtors 23 000
provision for doubtful debts 1 200
During April credit sales were $64 000 and cash sales were $256 000. Credit customers paid
$56 840 net of a 2 % cash discount.
What will be the trade debtors at 30 April?
A $27 800 B $28 960 C $29 000 D $30 160

Q3) A company has a share price that gives a dividend yield of 4 %. Earnings per share are $0.32 and
half the earnings are paid out as dividends.
What is the share price?
A $2.00 B $4.00 C $6.00 D $8.00[/size]
 
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Q1 ) ANSWER IS B $50

DEBTOR 18000 (100%)
PROVISION 900 ( 5%)
BAL DEBTOR 17100 ( 95%)

THEREFORE THIS PRIVISION 900
LAST YR PROVISON (850)

ANSWER $ 50

OK GOTIT RIGHT
 
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