Question

A man is insolvent to pay debts journal entry

Answer 1

The entry will be


Bad Debts a/c Dr xxxx

To Debtor's a/c xxxx

(Being amount from Debtor becomes unrealisable)


Bad Debts a/c is a nominal a/c.Bad Debts is a loss.Loss should be debited as Per the golden rules of accounting.

Debtor's a/c is a Personal a/c. Debtor is the giver..Giver should be credited as Per the golden rules of accounting.