A bill discounted from bank of ?5000 was dishonoured as debtor had become bankrupt. No amount was recoverable from him. Pass journal entry for dissolution.

Dear student,
                                                   JOURNAL ENTRY
PARTICULARS LF DEBIT AMOUNT CREDIT AMOUNT
Realisation a/c dr..
          To Bank a/c 
(Being the payment made to the bank for the bill discounted with bank now dishonoured)
  5000


 
5000
 
Regards

  • 3
Debtor a/c dr
To bank a/c

Bad debts a/c dr
To debtor
  • -1
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