3 Mohan who owed Rs 2,000 to the firm, declared himself insolvent and his official receiver paid Rs 1,200 - Accountancy - Recording of Transactions - I

Question

3 Mohan who owed Rs 2,000 to the firm, declared himself insolvent
and his official
receiver paid Rs 1,200 in full settlement of the amount due from
him

Pushpak Popli · Accepted Answer

Dear Student,

Assuming that you want the journal entry to the mentioned query,
the answer is given below:

Journal

Sr
No

Particulars

L
F

Debit

Credit

Cash
A/c

Dr

1200

Bad
Debts A/c

Dr

800

To
Mohan's A/c

2000

(Being 1200 in full settlement
recovered from
Mohan)

Regards

Particulars		Debit	Credit
Cash A/c	Dr.	1200
Bad Debts A/c	Dr.	800
To Mohan's A/c			2000
(Being 1200 in full settlement recovered from Mohan)

3. Mohan who owed Rs 2,000 to the firm, declared himself insolvent and his official receiver paid Rs 1,200 in full settlement of the amount due from him.

3. Mohan who owed Rs 2,000 to the firm, declared himself insolvent and his official
receiver paid Rs 1,200 in full settlement of the amount due from him.