A Flower has several debtor accounts within his books. Two of these debtors, A Cam and P Rose, who owe respectively £250 and £130, have both been declared bankrupt and there is no possibility that these debts will be paid. Show the adjustments necessary in the accounts of A Flower as at the year end, 31.12.X5, to deal with these bad debts.

Use a ledger account entitled bad debt account to make the required adjustments.