Question

Give journal entries for the following:
i. Received only 60 paisa in rupee from official receiver of Mr. Vinod who owed Rs.10,000
ii. Paid Rs.7,300 to Vinod in full settlement of his account of Rs.7,500
iii. Received cash from Vinod for a bad debt written off last year Rs.500.​

Answer 1

Answer:

cash a/c. dr. 6000

bad debt. dr. 4000

To vinod. 10000

vinod.a/ c. dr. 7500

To varsha/ c. 7300

To discount a/ c. 200

cash a/ c. dr. 500

To bad debt recovered. 500