Question

mahesh A debtors 2000 becomes insolvent 40 percent amount was received from government receiver​

Answer 1

Answer:

Cash A/c Dr. 6,000

Bad Debts A/c Dr. 4,000

To Sohan A/c 10,000

(Being the cash dividend of 60 paise in a rupee out of his debt of Rs. 10,000 received from Sohan on his insolvency).