Question No 18 Chapter No 5 - USHA Publication 11 Class

Question No 18 Chapter No 5

Table of Contents

The solution of Question No 18 Chapter No 5: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

18. Record the following transaction in the book of Aarti:

2018
Mar. 1	Pooja who owed Rs 60,000 is declared insolvent. First and final composition of 80% is recovered from her
Mar. 8	Received RS 56,000 from Sneh on her insolvency, being 80% of the amount due.
Mar. 15	Recovered Rs 19,900 from Akansha whose account of Rs 24,800 was written off as bad in the past.
Mar. 21	Deep Shikha who owed RS 45,000is declared insolvent. The first instalment of 40% recovered from her.
Mar. 31	A second and final dividend of 30% could re recovered from deep Shikha

The solution of Question No 18 Chapter No 5: –

In the Books of Parsha
Date	Particulars		L.F.	Debit	Credit
2018
Mar.1	Cash A/c	Dr.		48,000
	Bad Debts A/c	Dr.		12,000
	To Pooja A/c				60,000
	(Being 80% recovery on the insolvency)

Mar.8	Cash A/c	Dr.		56,000
	Bad Debts A/c	Dr.		14,000
	To Sneh A/c				70,000
	(Being 80% recovery on the insolvency)

Mar.15	Cash A/c	Dr.		19,900
	To Bad debts Recovered A/c				19,900
	(Being Rs 19,900 recovered from bad debts )

Mar.21	Cash A/c	Dr.		18,000
	To Deep Shikha A/c				18,000
	(Being the first instalment 40% received on insolvency.)

Mar.31	Cash A/c	Dr.		13,500
	Bad debts A/c	Dr.		13,500
	To Sneh A/c				27,000
	(Being the first installment 30% received on insolvency.)

Working note: –

Mar.1: Pooja who owed Rs 60,000 is declared insolvent. First and final composition of 80% is recovered from her

Amount Received	=	Amount owned	*	80%
	=	60,000	X	80%
	=	28,000/-

Mar.8: Received Rs 56,000 from Sneh on her insolvency, being 80% of the amount due.
In this entry we did noy received the 20% of the amount which will be calculated in the following ways