# Question No 18 Chapter No 5 – USHA Publication 11 Class

Q-18 - CH-5 - USHA +1 Book 2020 - Solution

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)

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