Joined: 25 Aug 2009 Location: United States
Online Status: Offline Posts: 69
Posted: 20 Sep 2009 at 14:14 | IP Logged
ok. I know it sounds horrible, that I am working on FAR and struggling with how to find the missing peice of a Taccount. In my defence, i have been out of school for 10 years.
None the less, i need help.
Can anyone give me tips on how they do it. Good example will be Account receivable or an allowance account. How to work it?
Joined: 07 Dec 2008 Location: United States
Online Status: Offline Posts: 624
Posted: 20 Sep 2009 at 14:32 | IP Logged
I'd love to help, but just don't get what you are asking. Are you referring to a plug figure? Debits must equal credits. Fill in what you know and plug the hole.
Joined: 25 Aug 2009 Location: United States
Online Status: Offline Posts: 69
Posted: 20 Sep 2009 at 16:09 | IP Logged
For example
Allowance account has the Begining Balance, recovery and CY bad debt expense on credit side and teh write off on the debit side. Now if they give us the ending balance on the credit side and we need to find say teh bad debt expesne. how do you do?
Joined: 07 Dec 2008 Location: United States
Online Status: Offline Posts: 624
Posted: 20 Sep 2009 at 17:10 | IP Logged
Yeah, it really is as simple as I said before.
Set up a T-account. The beginning balance on the right (credit side) is where you start. Any additions to the account are credited as well. CY bad debt expense, for example. Any write offs of receivables are debited (left side) and any recoveries are credited (restored) back to the right side. Then, if you know the ending balance (i.e. figure it out based on an aging of receivables for example), then you just add up the right side and add up the left side and plug either a debit or credit where it needs to be to make it equal the ending credit balance. In this case, more times than not, you'll need an extra credit to reach the ending balance. That credit adjustment will also equal bad debt expense.
Joined: 29 May 2008
Online Status: Offline Posts: 115
Posted: 02 Oct 2009 at 18:39 | IP Logged
Bryris,
I have a question regarding the plug in for an allowance for B/D a/c. Suppose the beginning balance is $22,200 and you have to determine the bad debt expense for the year. The ending bal is $61200 and $50000 of bad debts have been written off. How do you arrive at the answer using a T account?
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Topic: Find missing peice in a Taccount
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