Question

In journal entry...
ramesh sold goods to dinesh 14000 in april 1...
in april 28 dinesh was declared insolvent and payment of 60 paise in a rupee recived from his real estate by cheque... how to fill entry in 28 april​

Answer 1

The first journal entry will be

Dinesh -Dr 14,000

  To Sales      14,000

Because Dinesh is our debtor, an asset and sale is income and we know increase in assets is debited and increase in income is credited.

On 28 Apr, the entry would be:

Bank A/c -Dr           8,400

Bad Debṭs A/c -Dr  5,600

  To Dinesh                 14,000

Explanation:

Since 60% of 14,000 was received through cheque, the bank account is debited.

The remaining amount, ie 40% of 14,000 is bad debt because Dinesh has become insolvent, so he can't pay it.

And, Dinesh's account is credited by 14,000 because he is not more our debtor.

Answer 2

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