1 In a new business during the year ended 31 December 2006 the following debts are found to be bad, and are written off on the dates shown: 31 March G Frank £180 30 June B Will £219 31 October R Stot...

1

In a new business during the year ended 31 December 2006 the following debts are found

to be bad, and are written off on the dates shown:

31 March G Frank £180

30 June B Will £219

31 October R Stot £42

On 31 December 2006 the schedule of remaining debtors totalling £17,162 is examined and it is

decided to make a provision for doubtful debts of £343.

You are required to show:

(a) The bad debts account, and the provision for doubtful debts account.

(b) The charge to the profit and loss account.

(c) The relevant extracts from the balance sheet as at 31 December 2006.