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
April 2 R8,000 due from Ramesh is not recoverable
April 3 Shyam, who owed 15,000 became insolvent and 50% is received from his estate
April
4 Received 10,000 in cash from Sohan for bad debts written off last year​

Answer 1

Answer:

1:- cash dr 2500

bad debt dr 2500

to mohan 5000

2:- bad debt dr 8000

to mahesh 8000

3:- cash dr 7500

bad debt dr 7500

to shyam 15000

4:-cash dr 10000

to bad debt recovered 10000

Answer 2

                          Journal Entries

1 April 2020

Cash A/C DR 2,500

Bad Debt A/C DR 2,500

            To Mohan A/C 5,000

( Being mohan declared insolvet and 50% recovered )

2 April 2020

Bad Debt A/C DR 8,000

         To Ramesh A/C 8,000

( Being ramesh declared insolvent )

3 April 2020

Cash A/C DR 7,500

Bad Debt A/C DR 7,500

             To Shyam A/C 15,000

( Being shyam declared insolvent and recovered 50% )

4 April 2020

Cash A/C DR 10,000

         To Bad Debt A/C 10,000

(Being bad debt recovered )