Question

Received a first and final dividend of $60$ paise in the rupee from the Official Receiver of Mr. Ram who owed $Rs.2,000$.

• A. Discount allowed A/c be debited with $Rs.800$
• B. Bad debts recovered A/c be debited with $Rs.12,00$
• C. Bad debt A/c be credited with $Rs. 800
• D. Bad debt A/c be debited with $Rs. 800

Answer 1

The correct option is D Bad debt A/c be debited with $Rs. 800

The Journal Entry will be..
Cash a/c Dr. 1200
Bad dept a/c Dr 800
To Ram a/c. 2000