1 A business had always made a provision for doubtful debts at the rate of 4% of debtors. On 1 January 2008 the amount, brought forward from the previous year was £320. During the year to 31 December...

1

A business had always made a provision for doubtful debts at the rate of 4% of debtors. On

1 January 2008 the amount, brought forward from the previous year was £320.

During the year to 31 December 2008 the bad debts written off amounted to £680.

On 31 December 2008 the remaining debtors totalled £16,800 and the usual provision for

doubtful debts is to be made.

You are to show:

(a) The bad debts account for the year ended 31 December 2008.

(b) The provision for doubtful debts account for the year.

(c) Extract from the profit and loss account for the year.

(d) The relevant extract from the balance sheet as at 31 December 2008.