Question

Received at the rate 75 paise in a rupee from ondata of rupees 500 general entry

Answer 1

Answer:

Cash A/c_Dr (6000)

Bad Debts A/c_Dr (4000)

To Sohan (10000)

(Being 60 paise in a rupee received from Sohan out of debt of ₹10,000 in full settlement of his account)

Reason : Cash Account is debited because it increases the balance of Cash(Assets) Account, Bad Debts(Loss) Account is debited because it increases the balance of Bad Debts(Losses) Account and Sohan(Debtor) Account is credited because it decreases the balance of Debtors(Assets) Account.