Question 4 Part A. 

Write the journal entries for the bad debt expense for the year ended 30 June 2024 and show workings for the calculation of the bad debt expense. (2 marks)

Question 4 Part B. 

For the year ended 30 June 2025, QWE’s credit manager decides to increase the estimated collectible percentage to 60% for amounts that were more than 60 days past due. The estimated collectible percentages for the other

aging groups remain the same as those at 30 June 2024. On 30 June 2025, the accounts receivable in different aging groups were $150,000 (current), $50,000 (1-30 days past due), $38,000 (31-60 days past due) and $19,000 (over 60 days past due).

What is the closing balance of allowance for doubtful debt for the year ended 30 June 2025? (1 mark)

Question 4 Part C. 

For the year ended 30 June 2025, QWE’s credit manager decides to increase the estimated collectible percentage to 60% for amounts that were more than 60 days past due. In the past they used 40% collectible estimate. Provide TWO reasons for why QWE’s credit manager might be using a larger percentage. (2 marks)

Question 3 [6 Marks]

The following are the journal entries for the transactions that occurred for TTT Ltd during the year ended 30 June 2025:

Required: Based on the journal entries provided, prepare all necessary closing entries for TTT Ltd.

Question 2 Part A. 

Prepare the Income Statement for XYZ Ltd for the month ended 31 July 2025. (6 marks)

ii. On 1 August 2025, XYZ Ltd invested $600,000 in a fixed deposit earning 6% annual interest, payable annually. As at 31 August 2025, no interest related to this deposit has yet been recorded. (3 marks)

i. On 1 August 2025, XYZ Ltd received $60,000 cash in advance for a 6-month consulting contract (1 August 2025 – 31 January 2026). (3 marks)

Question 1 [1 mark]

What was ABC Ltd.’s net profits for the month ended 31 July 2025?