Question

5. Pass Journal entries for the following transactions:
2020
April 1 Mohan is declared insolvent. Received first and final dividend from his official Receiver 50 paise
in a rupee against a debt of 5,000.(WRITE FORMOLA AND ENTRY)​

Answer 1

Answer:

2020

April 1 Mohan is declared insolvent. Received first and final dividend from his official Receiver 50 paise

in a rupee against a debt of 5,000.(WRITE FORMOLA AND ENTRY)

no entry will be passed

Answer 2

Explanation:

as mohan received 50%of cash so 2500 will go to cash A/c and 2500 will go to bad debt A/c and both will be debited and 5000 to Mohan will be credited