Accounting

onethreefive

Hey.
I'm doing OL Accounting and I have every question figured out except Final Accounts of a Company.

I printed off all of the marking schemes from previous years but its confusing me because they are all different! As in the layout. For example in 2010 the provision for bad debts is included under the heading SELLING AND DISTRIBUTION but in 2007 its included under Operating income.

Can somebody please help with this because its the only thing I need to learn for how to do and I just can't figure it out!

Kyro

onethreefive wrote: »

Hey.
I'm doing OL Accounting and I have every question figured out except Final Accounts of a Company.

I printed off all of the marking schemes from previous years but its confusing me because they are all different! As in the layout. For example in 2010 the provision for bad debts is included under the heading SELLING AND DISTRIBUTION but in 2007 its included under Operating income.

Can somebody please help with this because its the only thing I need to learn for how to do and I just can't figure it out!

If there is an increase in the BDP from the previous year, it is an expense and so will appear under selling and distribution. If there is a decrease in BDP from the previous year, it will be a gain and so will appear under operating income.

onethreefive

Thank you SO much!

BDP means bad debt provision yeah?

Kyro

onethreefive wrote: »

Thank you SO much!

BDP means bad debt provision yeah?

Yup. Your welcome.