Question

Dinesh was declared insolvent and payment of 60paise in a Rs.received from his estate by a cheque
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Answer 1

It means that Dinesh has become insolvent and is not capable to pay off is creditors. Therefore only he is capable of paying only 60% of the total amount due by him towards his creditors , cheque means bank account.

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Answer 2

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