1. During the year to 31 December 20X6,the following debts are found to be bad and are written off on the dates shown:
T Wright, £86
S O’Connor, £111
C Smith, £75
S Proctor, £39
Show the bad debts account and the effect on the profit and loss account for the year ended 31 December 20X6.
1. The following are the total figures for debtors at the end of each financial year. The provision for doubtful debts is to be maintained at 4% of debtors at the year-end.
Year ended 31 December
Value of debtors (£)
Assuming no provision had previously existed you are required to:
(a) Construct the provision for doubtful debts account for 20X1, 2 and 3.
(b) Show the relevant entries on the profit and loss account for the year ended 31 December 20X1, 2 and 3.
(c) Show the debtors on balance sheet extracts as at 31 December 20X1, 2 and 3.
1. On 1 July 20X6 there was a balance of £600 in the Provision for Doubtful Debts Account and it was decided to maintain the provision at 5% of the debtors at each year-end. The debtors at 30 June for the next three years were:
Show the provision for doubtful debts account for the period 1.7.X6 to 30.6.X9
1. As at 1 April 20X8 we were owed £650 from Paul Evans. On 26 July Evans was declared bankrupt. A payment of 35p in the £ was received in full settlement. The remaining balance was written off as a…