Question

mohan is declared insolvent. received first and final dividend from his official receiver 50 paise in a ruppe against a debt of rs.5000 . write a journal entry​

Answer 1

Answer:

Bank A/c ...Dr. 2500

Bad debts A/c ...Dr. 2500

To Mohan 5000

Answer 2

Answer:

When a person is declared insolvent, bad debts are entered into the accounts. The journal entry will be-

Bad debts A/c          Dr.       2500

Bank A/c                   Dr.       2500

            To Mohan A/c                 5000