On 1 January 2008 Scottish Castle Ltd had a balance on its debtors account and a provision for doubtful debts as follows:

On 31 December 2008 the balance on the debtors account was £1,600,000.
The company’s management then decided to write off balances of £30,000 as bad debts and to make a provision of 0.5 percent against the remaining total debtors.
What would be the totals which appear in the profit and loss account and balance sheet following the above adjustments?

Transcribed Image Text:

Dr balance Cr balance 1,840,000 9,200