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What's your biggest obstacle to success?

My confusion is always my success enemy #1. Whenever I decide to achieve something then there is always another option in my mind through which i become unable to achieve that success sometimes.

What are your strengths and weaknesses? My strength is my weakness. Commitment/Promise to work is my strength. Sometimes it becomes my weekness.If the work is given to me. I wont leave it till it gets completed. I will try to complete as soon as possible

How much salary do you expect? Sir, I'm expecting the salary according to the company's rules and designation and my qualification.

DRBed dats expense To CRProvision for doubtful ac (balance sheet)

bad debts expense. Unlike direct write-off method, we do not credit accounts receivable at this stage because it is actually a control account of many individual debtor accounts and we do not yet not know which particular debtor will make a default. We only know the estimated amount of receivables which are likely to end up uncollected. Therefore a provision account called allowance for doubtful accounts is credited in the adjusting entry. Thus: Bad Debts Expense Allowance for Doubtful Accounts 600 600

The bad debts expense account, just like any other expense account, is closed to income summary account of the period. The allowance for doubtful debts is contra-asset account. It is presented on balance sheet by subtracting it from accounts receivable as shown below: Accounts Receivable Less: Allowance for Doubtful Accounts $15,000 600

Accounts Receivable, net

$14,400

Write-off Entry
In the next period, when a debt is actually determined as uncollectible, the following journal entry is passed to write it off. Allowance for Doubtful Debts Accounts Receivable 70 70

As more and more debts are written off, the balance in the allowance account decreases.

Recovered Bad Debts


When any bad debt is recovered, two journal entries are passed. The first one reverses the write-off entry and the second one is a routine journal entry to record collection. Thus: Accounts Receivable Allowance for Doubtful Debts Cash Accounts Receivable 70 70 70 70

At the end of next accounting period, bad debts are estimated again and the balance in the allowance account is adjusted. There are two commonly used methods to estimate and adjust the balance of allowance account:

Debit entries are ones that account for the following effects: Increase in assets Increase in expense Decrease in liability

Decrease in equity Decrease in income

Credit entries are ones that account for the following effects: Decrease in assets Decrease in expense Increase in liability Increase in equity Increase in income

Double Entry is recorded in a manner that the Accounting Equation is always in balance. Assets - Liabilities = Capital

Journal Entries for Depreciation

Disposal of Fixed Assets


Disposal of a fixed asset is the withdrawal of a fixed asset from use upon the completion of its useful life or due to lower productivity in its later life.

Disposal of an Asset with no Salvage Value


In a rare situation where the salvage value of the fixed asset is zero, there will be no terminal cash flow and the journal entry will be as follows: Accumulated Depreciation Cost 100,000 100,000

Gain on Disposal
However, if an asset has a salvage value; it is likely that the disposal will cause gain or loss. When a fixed asset is sold at a price higher than its carrying amount at the date of disposal, the excess of sale proceeds over the carrying amount is recognized as gain.

Example
On January 1, 2006 Company A purchased equipment worth of $2 million. The company estimated the salvage value to be $0.2 million at the end of its useful life of 5 years. The company charges depreciation expense of (2,000,000 200,000) 5 or $360,000 each year. Carrying amount at the end of its useful i.e. December 31, 2010 is $0.2 million. The company succeeded in selling the asset for $0.5 million on that date. Since the sale proceeds exceed the carrying amount by $0.3 million so a gain is to be recognized using the following journal entry: Accumulated Depreciation Cash Equipment Gain of Disposal 1,800,000 500,000 2,000,000 300,000

The equipment account and the related accumulated depreciation account are written off in the process of disposal and the gain is reported in income statement.

Loss on Disposal
If a fixed asset is sold at a price lower than its carrying amount at the date of disposal, a loss is recognized equal to the excess of carrying amount over the sale proceeds.

Example
Assume that in the above example the sale proceeds were only $100,000. The carrying amount at the date of disposal was $200,000 so there is a loss of $100,000 since carrying amount exceeds sale proceeds. The following journal entry is passed to record loss on disposal. Accumulated Depreciation Cash Loss of Disposal 1,800,000 100,000 100,000

Equipment The loss in reported in income statement.

2,000,000

No Gain / Loss on Disposal


If the carrying amount of a fixed asset at the date of disposal is equal to the sale proceeds there is neither gain nor loss.

Example:
Assumed further that at the date of purchase Kingston Inc. entered into an agreement with USB Ltd. according to which USB had to purchase the asset at the end of its useful life of 5 years at a price of $0.2 million. On December 31, 2006 Kingston delivered the derecognized asset to USB for $0.2 million. Since carrying amount is equal to sale proceeds so no gain or loss is to be recognized. The journal entry would be: Accumulated Depreciation Cash Equipment Written by Obaidullah Jan 1,800,000 200,000 2,000,000