Self-test Ajax Electrical decides that 5 per cent of all debtors are assumed to be doubtful debts and makes a provision accordingly. You are told that the debtors’ balances are as follows:

31 December 2009 £50,000 31 December 2010 £60,000 31 December 2011 £40,000 You are required to show the relevant ledger account for the provision for doubtful debts for each year. Also indicate what amounts will appear in the profit and loss account and balance sheet at the end of each year.