Question

Raman who owed us Rs.2,000 was declared insolvent and paid 40 paise in a rupee. Journalise the transaction.​

Answer 1

Answer:

Cash A/c Dr. 6,000Bad Debts A/c Dr. 4,000 To Sohan A/c 10,000(Being the cash dividend of 60 paise in a rupee out of his debt of Rs. 10,000 received from Sohan on his insolvency).

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