Question

Rajesh, an old customer whose account for ₹ 10,000 was written off as bad debts last year, paid 70% of the amount at the time of dissolution of the firm.

The correct entry to record this transaction will be:

Options

• Debtors A/c   ...Dr.	7,000	-
  To Bad Debts Recovered A/c	-	7,000

• Cash/Bank A/с   ...Dr.	7,000	-
  To Bad Debts Recovered A/c	-	7,000

• Cash/Bank A/с   ...Dr.	7,000	-
  To Realisation A/c	-	7,000

• Realisation   ...Dr.	7,000	-
  To Bad Debts Recovered A/c	-	7,000

Answer 1

Cash/Bank A/с   ...Dr.	7,000	-
To Realisation A/c	-	7,000