Question

A debtor of Rs. 80,000
declared insolvent and
liquidator has declared
that 0.70 paisa will be
paid against Re. 1
outstanding. Calculate
the amount of bad debt.​

Answer 1

Answer:

bad debt = 80000×.30=24000

Answer 2

Explanation:

A bad debt is the amount of debt money that cannot be recovered for some reasons. Now as per given information, if total amount of debt money was 80,000 and out of that now 70% money would be given by debtor, this means that 30% of money will go into bad debt category. The amount of bad debt would be;

= 80,000 x 0.30

= 24, 000