Question

Narain Bros become insolvent; dividend of 50 paisa in the rupee is received.
An old amount, Written offas bad debt in 2013 is received. 150
Closing stock of goods Rs 8,000
what is the journal entry of this transaction ? ​

Answer 1

Answer:

cash account. dr

bad debt account dr

To Narain Bros.

Cash account. dr 150

To bad debt recovered 150

Closing stock dr 8000

To trading account. 8000