Question

rohit is declared insolvent.received from his official receiver 60 paise in a rupee on debit of 10,000 show the result in accounting equation

Answer 1

Explanation:

Particulars

L.F.

Dr. Rs.

Cr. Rs.

Cash A/c

Dr.

6,000

Bad debts A/c

Dr.

4,000

To Vinod A/c

10,000

(Being 60 paise in rupee received from Mr. Vinod out of a debt of Rs.10,000)

Raj A/c

Dr.

7,500

To Cash A/c

7,300

To Discount Received A/c

200

(Being the cash paid to Raj after receiving discount of Rs.200)

Cash A/c

Dr.

500

To Bad Debts Recovered A/c

500

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