Age Analysis
Th is a part of internal control.
The bookkeeper or accountant of a business regularly draws up an Age Analysis on debtors and
creditors.
Used to determine whether debtors are paying accounts in stipulated period.
Example:
Age analysis of company, example XX Ltd., on date, example 31 May 2020.
Debtor Credit Limit Present Current 30 days 60 days 90 days 120 days
balance
Name 1 e.g. 10 000 6 400 2 200 4 200
Name 2 e.g. 8 000 8 000 3 600 1 200 3 200
Name 3 e.g. 12 000 11 000 440 2 300 5 600 2 100 560
Total e.g. 25 400 6 240 7 700 8 800 2 100 560
Percentage 100% 24.6% 30.3% 34.6% 8.3% 2.2%
Credit Limit
= The total amount debtor allowed to spend on their account.
This is set by the business that is selling on credit.
A debtor may not owe more than this amount at any time.
Present balance
= The debit balance on individual debtors account as at, example 31 May 2020.
The total must agree with the balance in the Debtors control account on, example 31 May
2020.
Current
= The amount the debtor bought for during current month, example May 2020.
There is no payment for this amount yet.
30 Days
= The amount the debtor still owes for goods sold to them last month, example April 2020.
60 Days
= The amount the debtor still owes for goods sold to them 2 month ago, example March 2020.
90 Days
= The amount the debtor still owes for goods sold to them 3 month ago, example February
2020.
120 Days
= The amount the debtor still owes for goods sold to them 4 month ago, example January 2020
and earlier.
Th is a part of internal control.
The bookkeeper or accountant of a business regularly draws up an Age Analysis on debtors and
creditors.
Used to determine whether debtors are paying accounts in stipulated period.
Example:
Age analysis of company, example XX Ltd., on date, example 31 May 2020.
Debtor Credit Limit Present Current 30 days 60 days 90 days 120 days
balance
Name 1 e.g. 10 000 6 400 2 200 4 200
Name 2 e.g. 8 000 8 000 3 600 1 200 3 200
Name 3 e.g. 12 000 11 000 440 2 300 5 600 2 100 560
Total e.g. 25 400 6 240 7 700 8 800 2 100 560
Percentage 100% 24.6% 30.3% 34.6% 8.3% 2.2%
Credit Limit
= The total amount debtor allowed to spend on their account.
This is set by the business that is selling on credit.
A debtor may not owe more than this amount at any time.
Present balance
= The debit balance on individual debtors account as at, example 31 May 2020.
The total must agree with the balance in the Debtors control account on, example 31 May
2020.
Current
= The amount the debtor bought for during current month, example May 2020.
There is no payment for this amount yet.
30 Days
= The amount the debtor still owes for goods sold to them last month, example April 2020.
60 Days
= The amount the debtor still owes for goods sold to them 2 month ago, example March 2020.
90 Days
= The amount the debtor still owes for goods sold to them 3 month ago, example February
2020.
120 Days
= The amount the debtor still owes for goods sold to them 4 month ago, example January 2020
and earlier.
