Question

journalise the following: a) Dinanath , a debtor for Rs.40,000 has become insolvent and 25% is received from his estate by cheque. b) Received a cheque for a bad debt written off last year Rs. 10,000.​

Answer 1

Answer:

(a)Bank A/C Dr. 10000

Bad debt A/C Dr. 10000

To Dinanath A/C. 10000

(being dinanath a debtor become insolvent. and 25% money recieved)

(b) Bank A/C Dr. 10000

To Bad debt A/C. 10000

(being a cheque recieved for bad debt written off last year)