Question

mr dinath who owned rs 50000 became insolvent and paid only 40 percent of his amount . what is the term used for the amount not received

Answer 1

The term used is bad dues.

• Bad dues are an expense borne by an enterprise until it is estimated that the repayment of credit originally granted to a borrower is uncollectible.
• It is a contingency that all enterprise that lends credit to consumers need to prepare for, since there is often a chance that payment will not be obtained.
• Since, Dinath paid only 40% of 50,000 which is 20,000 the remaining amount which is unpaid will be termed as bad dues.