Question

journalise the following transactions. i) Jagat was declared insolvent this year and an amount of Rs 3000 is to be shown as bad debts in the book of account. ii) Mr. X who owes Rs 2000 has become insolvent. He pays Rs 1000 in full and final settlement iii) received cash for bad debts written off last year Rs. 400. iv) paid interest on loan Rs. 500.​

Answer 1

Answer:

1) bad debt a/c dr. 3000

to jagat a/c 3000

2) cash a/c dr. 1000

bad debt a/c dr. 1000

to mr. x a/c 2000

3) cash a/c dr. 400

to bad debt a/c 400

4) interest on loan a/c dr. 500

to cash / bank a/c 500