Question

Received first installment of rupees 35000 from Shabana who is declared insolvent .
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this is exact ques. kindly answer this quest. as soon as possible

Answer 1

Answer:

Journal entry

Bad debts A/c   Dr   35000

     To shabana A/c                  35000

(being shabana became 100% insolvent )

Explanation:

Need to assume has 100% of the value is insolvent so it should be taken as bad debts

Answer 2

your journal entry will be:

bad debt a/c. Dr. 35000

to Shabana a/c. 35000

(Being Shabana is declared insolvent)