Question

Dinesh a costomers is declared insolvent and 40 paise in a rupee is received from the estate for his due 10000

Answer 1

Answer:

Answer:

Journal entry [1]

Dinesh - Dr 14,000

To Sales - 14,000

Now

Journal Entry to Dinesh

Bank A/c -Dr 8,400

Bad Debṭs A/c -Dr 5,600

To Dinesh 14,000

Answer 2

Answer:

Bad debts A/c               Dr 6000

Bank A/c                        Dr 4000

        To Dinesh                          10000

(For Dinesh a costomers is declared insolvent and 40 paise in a rupee is received from the estate)