Question

Rahul become insolvent, who owed is ₹2000 a final dividend 60 paisa in a rupeesis received from his estate

Answer 1

Answer:

Journal entry

cash  A/c       Dr   1200    

Bad debts A/c  DR 800

       To Rahul A/c                2000

(being cash received from rahul )

Explanation:

Cash A/c - real account , cash comes in , therefore its debited

bad debts A/c - nominal account - its expenses , therefore its debited

rahul A/c - personal account - hes the giver (who pays ) therefore its credited

Answer 2

journal entry will be:

cash a/c. Dr. 1200

bad debt a/c. Dr. 800

to Rahul a/c. 2000 (Being Rahul became insolvent)