On 20 September 20-7 Brian Fox’s debtors totalled £12,000. He decided to write off the following as bad debts;

£

G Green 60 H Wilson 80 He further decided to make a provision for doubtful debts of 10 per cent on the remaining debtors. On 30 September 20-8 his debtors totalled £10,000 when Brian Fox decided to maintain the provision at 10 per cent. You are required to show for each of the years ended 30 September 20-7 and 20-8;

(a) Provision for doubtful debts account.

(b) The appropriate entries in the profit and loss account.

(c) The necessary balance sheet entries.