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An amount of 6000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is. ?
Most Upvoted Answer
An amount of 6000 due from Anshul, which had been written off as a bad...
Rectification Entry for Recovery of Bad Debt from Anshul
Explanation:
When an amount is written off as a bad debt, it means that the company has given up all hope of recovering the amount from the debtor. However, there may be cases where the debtor may pay back the amount after it has been written off. In such cases, the entry needs to be rectified to show that the amount has been recovered.
Rectification Entry:
The rectification entry for the recovery of bad debt from Anshul would be as follows:
Journal Entry:
Debtor's Personal Account (Dr.) 6,000
To Bad Debts Recovered Account (Cr.) 6,000
Explanation of the Rectification Entry:
The above entry can be explained as follows:
- The debtor's personal account is debited with the amount of 6,000 because the amount has been recovered from the debtor.
- The Bad Debts Recovered Account is credited with the amount of 6,000 because the amount was earlier written off as a bad debt.
The above entry rectifies the error that was made when the amount was written off as a bad debt. It ensures that the recovered amount is properly accounted for in the books of accounts and that the financial statements reflect the correct position of the company.
Explanation:
When an amount is written off as a bad debt, it means that the company has given up all hope of recovering the amount from the debtor. However, there may be cases where the debtor may pay back the amount after it has been written off. In such cases, the entry needs to be rectified to show that the amount has been recovered.
Rectification Entry:
The rectification entry for the recovery of bad debt from Anshul would be as follows:
Journal Entry:
Debtor's Personal Account (Dr.) 6,000
To Bad Debts Recovered Account (Cr.) 6,000
Explanation of the Rectification Entry:
The above entry can be explained as follows:
- The debtor's personal account is debited with the amount of 6,000 because the amount has been recovered from the debtor.
- The Bad Debts Recovered Account is credited with the amount of 6,000 because the amount was earlier written off as a bad debt.
The above entry rectifies the error that was made when the amount was written off as a bad debt. It ensures that the recovered amount is properly accounted for in the books of accounts and that the financial statements reflect the correct position of the company.
Community Answer
An amount of 6000 due from Anshul, which had been written off as a bad...
Anshul A/c Dr. 6000
To Bad Debts Recovered A/c 6000
To Bad Debts Recovered A/c 6000
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An amount of 6000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is. ?
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An amount of 6000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is. ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about An amount of 6000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is. ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An amount of 6000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is. ?.
An amount of 6000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is. ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about An amount of 6000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is. ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An amount of 6000 due from Anshul, which had been written off as a bad debt in a previous year, was unexpectedly recovered and had been posted to his personal account. The rectification entry is. ?.
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