Question

Pooja who owed 60,000 is declared insolvent. First and final composition of 80% is recovered from
Recovered 56,000 from Sneh on her insolvency, being 80% of the amount due
Precovered 19,900 from Akansha whose account of 324.800 was written off as bad in the past​

Answer 1

Answer:

Cash account dr. 48000

Bad debts account debit. 12000

To pooja. 60,000

Cash account debit. 56000

Bad debts account debit. 14000

To Sneh 70,000

Explanation:

56000÷80*100 = 70,000

Cash a/c..... dr. 19,900

to bad debts recovered. 19,900