Question

journal entry of Ramesh debtor for 10000 became bankrupt and half the payment is received from him

Answer 1

The Journal Entry will be...

Cash a/c Dr 5000

Bad debts a/c Dr 5000

To Ramesh a/c. 10000

(being amount Recovered from Ramesh at 50 paise Per rupee)


cash account is a real account (all assets and Liabilities come under Real account..cash is an asset)

Bad debts is a nominal account (All expenses incomes gains losses come under it...Bad debts is a loss)

Ramesh is a Personal account..


The Three golden rules of accounting are..

Personal account - Debit the receiver ,credit the giver

Nominal account - Debit All expenses and losses, credit All incomes and gains

Real account - Debit what comes in credit ,what goes out


in contention with the above rules...

since cash is coming in and Bad debts is a loss..they should be debited..

Since Ramesh is the giver..he should be credited.

Answer 2

heyaa,,,
it's journal entry will be;
cash a/c Dr 5000
baddebts a/c Dr 5000
to RAMESH a/c. 10,000.
(being ram became insolvent and 50%amount recovered from his estate.)