[amp_mcq option1=”Provision for bad debts” option2=”Debtors” option3=”Goodwill” option4=”Cash and Bank” correct=”option1″]<\/p>\n
The correct answer is: A. Provision for bad debts<\/strong><\/p>\n A provision for bad debts is an estimate of the amount of money that a company expects to lose on debts that will not be paid. This amount is recorded as an expense in the profit and loss account and is not transferred to the realisation account.<\/p>\n Debtors are amounts owed to a company by its customers. These amounts are recorded as assets in the balance sheet and are transferred to the realisation account.<\/p>\n Goodwill is an intangible asset that represents the value of a company’s reputation and customer base. This amount is recorded as an asset in the balance sheet and is transferred to the realisation account.<\/p>\n Cash and bank are the amounts of money that a company has on hand or in its bank accounts. These amounts are recorded as assets in the balance sheet and are transferred to the realisation account.<\/p>\n In conclusion, the only account balance that will not be transferred to the realisation account is the provision for bad debts.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Provision for bad debts” option2=”Debtors” option3=”Goodwill” option4=”Cash and Bank” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-56730","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n