A business started trading on 1 January 19X6. During the two years ended 31 December 19X6 and 19X7 the following debts were written off to bad debts account on the dates stated:

31 August 19X6 W Best 30 September 19X6 S Avon 28 February 19X7 L J Friend 31 August 19X7 N Kelly 30 November 19X7 A Oliver On 31 December 19X6 there had been a total of debtors decided to make a provision for doubtful debts of £550.

On 31 December 19X7 there had been a total of debtors decided to make a provision for doubtful debts of £600.

£85

£140

£180

£60

£250 remaining of £40,500. It was remaining of £47,300. It was You are required to show:

(i) The Bad Debts Account and the Provision for Bad Debts Account for each of the two years.

(ii) The charges to the Profit and Loss Account for each of the two years.

{Hi) The relevant extracts from the balance sheets as at 31 December 19X6 and 19X7.