Question

Kishore is our debtor for Rs. 50,000. He became insolvent and only 75 paise is received from him. ​

Answer 1

Answer:

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In that case only a part of debt is recovered or sometimes the whole debt is irrevocable in u r question 75p in a rupee is recoverable the rest is bad debt.

10000×75÷100=7,500 and rest 4000 is bad.

Cash acct dr 7,500

Bad debt acct dr 4000

To Kishore acct 10000

Thanx.

Answer 2

Answer:

Explanation:

Bank        a/c dr  37,500

Bad debt a/c dr  12,500

        To kishore                   50,000

( Kishore become insolvent

only 75 paise received from

him)

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