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Rrecieved rs 1,200 of a bad debts written-off last year..
Journal entry?
Journal entry?
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Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entr...
Cash a/c Dr. 1200
bad debts recovered 1200
bad debts recovered 1200
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Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entr...
Journal Entry for Bad Debts Written-Off
Explanation:
- Bad Debts: Bad debts are the amounts owed to a business that are no longer expected to be collected from the debtors due to various reasons such as bankruptcy, insolvency, etc.
- Written-Off: Writing-off bad debts means removing them from the accounts receivable balance as they are no longer expected to be collected.
- Recovery of Bad Debts: If a previously written-off bad debt is recovered, it is recorded as a gain in the income statement.
Journal entry for the recovery of bad debts written-off:
| Account | Debit | Credit |
|---|---|---|
| Bad Debts Recovered | - | 1,200 |
| Accounts Receivable | 1,200 | - |
Explanation of Journal Entry:
- The "Bad Debts Recovered" account is debited with the amount of 1,200 as it is a gain for the business.
- The "Accounts Receivable" account is credited with the same amount of 1,200 as it reduces the accounts receivable balance.
Conclusion:
Recovery of bad debts is a gain for the business and is recorded as a credit entry in the books of accounts. The above journal entry is an example of how to record the recovery of bad debts written-off in the previous year.
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Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entry?
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Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entry? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entry? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entry?.
Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entry? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entry? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rrecieved rs 1,200 of a bad debts written-off last year.. Journal entry?.
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