Question

Received first installment of rupees 35000 from Shabana who is declared insolvent

Answer 1

heyaa,,
no one should be declared insolvent. because here money is received so, we can't say that the amount is baddebts. if she is unable to pay the next installment then shabana will be declared as insolvent and the rest amount is written as bad debts.
entry;
bad debts a/c Dr
to shabana a/c
(being shabana declared insolvent)


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☺☺☺

Answer 2

cash A\C. Dr. 35000

To bad debts recovered A\c 35000

Explanation:

as the amount is recovered therefore bad debts recovered a\c

Nd the cash is received asset is increasing so, according to modern rule increase in asset is dr.