Question

if 40% amount is recovered from a customer due to insolvency the undercovered amount will be debited to​

Answer 1

Answer:

for example we are taking the amount

Explanation:

A debtor amounting Rs50000 became insolvent and only 40% was recovered from his personal estate.

*Cash/BankA/c Dr. 20000

Bad-DebtsA/c Dr. 30000

To Debtors A/c…………….50000

*P&L A/c Dr. 30000

To Bad-Debts A/c…………30000