a debt which cannot be recovered
Answers
Answer:
A debt which can not be recovered is termed as Bad Debt.
Explanation:
Bad debt is a terms when an proprietor/partner/Company is not in a position to recover the amount paid/good sold etc. despite repeated efforts, reason may be due to insolvency of the person or due to any other reason, he has been declared insolvent.
Further explanation:- If a person/firm/Company etc is not in a position to all the owing to him, they can approach a court for declaring him as Insolvent. The court, if satisfied, start the process and appoint official liquidator who takes all his Liabilities and Assets, value it and the process as required in started. Amount which can not be paid is treated as Bad Debt of the lender and in the insolvent person's account it is termed as Deficiency Account.
I think this will make the clear