Question

what is a journal entry for kamal became insolvent . a first and final Payment of 60 paisa in a rupee was received from his official received. he owed me debt off 500​

Answer 1

Answer:

cash account Dr. 300

bad debt account Dr. 200

To Kamal account Cr. 500

( being 60 paisa in a rupee recovered on the insolvency)

As per golden rule debit : what comes in

credit :what goes out for real account

hence cash is debited

also for nominal account : debit all expenses and losses .also, credit: all incomes and gains as bad debt is a loss so bad debt is credited

Kamal is the personal account so the rule is debit: the receiver and credit: the giver .as Kamal is the giver we credit Kamal account