Question

Journal entry for Rahul become insolvent who owed is RS.2000 a final dividend of 60 paise in a rupee received from his estate.

Answer 1

We have to first convert 60 paise in rupees
60x100 = 600
2000-600 = 1400

Answer 2

"Journal entry for Rahul become insolvent owned Rs 2000 (total debt recoverable)

Dividend = "60 paise" in a rupee received from his "estate".  

Cash A/C or Bank A/C DR $=\quad Rs\quad 1200\quad \Rightarrow \quad \left[ 2000\quad \times \quad 0.6 \right]$

Bad Debts A/C DR = Rs 800 → [2000 - 1200] (Non Recoverable)

So, 800 rupees is a loss

To Rahul Account (A/C) = Rs 2000  

Hence Rahul's account is settled."