Accounting – 5.1 Sole traders | e-Consult
5.1 Sole traders (1 questions)
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Calculation:
Provision for Doubtful Debts = 5% of £25,000
Provision for Doubtful Debts = 0.05 x £25,000
Provision for Doubtful Debts = £1,250
Amount to be shown in the Statement of Financial Position = £25,000 - £1,250 = £23,750
Answer: £23,750