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Question: At September 30th, 1961, the directors of XY Ltd. created a provision in their accounts against the following debts which they consider to be of doubtful nature:
During the year ended 30th September, 1962, no further business was done with any of these debtors, but a first and final dividend of £85 was received from the liquidator of Smith Ltd. and T. Robinson paid his debt in full. A further debt of £100. 16. 2. by King Ltd. proved to be bad.
On September 30th, 1962, the directors decided to maintain the provisions existing against the debts of S. Jones and A. Brown and to create provisions as follows:
Show the entries that these facts will require in the Company's Nominal Ledger in the year ended September 30th, 1962. T Re-printed by courtesy of the Society of Incorporated Accountants (S.A.A.).
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