Question

Shyam Lal and declared insolvent received from his official receiver first and final composition of 40 paise in a Rupee journal entry​

Answer 1

Explanation:

let the amount he owed rupees 1000 and he paid only 40 paisa =1000×40/100=400

and he debt 600 ruppes .

so the journal entry is :-

Cash account dr. 400

Bad debts account dr 600

To shyam lal 1000

[Being bad bedt and receive 400 ruppes ]