Question

Received Rs 950 from Dhanashree,a customer, whose account was earlier written off as a bad debts. Journalise it
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Answer 1

Journal Entry:-

Cash A/C_____________________Dr. Rs.950

_________To Baddebt Recovered A/C

(Being cash recieved as baddebt recovered)

Reason :- Cash is recieved ( what comes in Debit) and Baddebt Recovered is profit (all profit and income is credited).

Hope it helps! ^_^❤️

Answer 2

Journal Entry⬇️⬇️

Cash A/c ______________Dr__950

___To Bad debt recovered A/c_950

(Being the amount earlier written off as bad debt, now recovered)

☣️ A debtor whose account was earlier written off as bad debt may pay the amount partly or fully .The amount received is gain for the business because the amount was earlier written off as bad debts;loss.