Question

Pooja who owned 60000is declared insolvent. First and final composition 80%is recovered

Answer 1

Answer:

Journal entry

Bad debt A/c  Dr     12000

Cash   A/c        Dr     48000

       To Pooja A/c                         60000

(Being 80% is recovered from pooja remaining declared as bad debt )

       

Answer 2

your journal entry will be;

cash a/c. Dr. 48000

bad debt a/c. Dr. 12000

to Pooja a/c. 60000

(being cash received 80% form Pooja who declared as insolvent)