JAMB Accounts Principles of Accounts 2010 Paper

Concept:Deduct the provision for bad and doubtful debts first. Then calculate the provision for discount on the remaining debtors.Explanation:Take the total sundry debtors as $\mathrm{N}800{,}000$, since the options are in full naira.Bad and doubtful debts provision $= 5\% \times 800{,}000 = \frac{5}{100} \times 800{,}000 = 40{,}000$.Debtors after this provision $= 800{,}000 - 40{,}000 = 760{,}000$.Provision for discount is calculated on the remaining debtors.Discount provision $= 2\% \times 760{,}000 = \frac{2}{100} \times 760{,}000 = 15{,}200$.Sundry debtors after all provisions $= 760{,}000 - 15{,}200 = 744{,}800$.So the balance sheet figure for sundry debtors is $\mathrm{N}744{,}800$.Answer:B. N744800