Question No 18 Chapter No 5 – USHA Publication 11 Class

Question No 18 Chapter No 5

Question No 18 Chapter No 5

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

Bad Debts = Amount recovered X Rate
100- Rate
  = 56,000 X 20
100- 20
  = 56,000 X 20
80
         
  = Rs 14,000    

 

 

How to make Journal Entries in Accounting – Explanation

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Also, Check out the solved question of all Chapters: –

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

 

 

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