Question

Recieved s first and final dividend of 60 paisa in a rupee from the official reciever of Mr. Ranjan, who owed ₹ 100.prepare journal entry.

Answer 1

Cash A/C. Dr. Rs.60

Bad Debts A/C. Dr. Rs.40

To Ranjan A/C. Rs.100

(Being cash received from Ranjan and account settled)

1 rupee = 100 paise

Amount received = 0.6 rupee × 100 = Rs.60

The remaining Rs.40 will not be received anymore from Rajan. Therefore ,it is treated as bad debts and needs to be debited since it is a loss.

Answer 2

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Journal Entry ⏬⏬⏬



Cash A/c................................Dr.....60
Bad debt A/c......................Dr..40
........To Ranjan ...100