Question

sold goods rs 10000 to anjali and anjali treated as insolvent only 50% recover from him journal entry

Answer 1

Cash a/c dr. 5000

Bad debts a/c dr. 5000

To Anjali a/c 10000

( being anjali treated as insolvent only 50% recover )

Answer 2

Journal entry

Cash a/c dr. 5000  

Bad debts a/c dr. 5000

                To Anjali a/c 10000

( being anjali treated as insolvent only 50% recover from anjali )

Reason :

Non Recoverable amount from anjali should be recorded as bad debt . its a loss to the company therefore its debited