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A debtor who owed Rs.20000 became insolvent and 60 paise in a rupee only can be realised from him.

Journalise this entry.

Hey,
Answer posted by Kriya is correct. Good Attempt!!
@Priya as 60 paise in a rupee can be realised from the debtors estate, thus, Rs 12,000 should be debited to Cash A/c and remaining amount of Rs 8,000 will be debited to Baddebts A/c.

Hope this answers your query.
Keep Posting!!!

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journal entry will be

BAD DEBT A/c                         Dr.                         12000
CASH A/c                                  Dr.                            8000
              TO DEBTOR A/c                                                                  20000
(40 paise in a rupee is received ,i.e, 20000*40/100 =8000  therefore cash a/c is dr.  and 12000 is insolvent therefore bad debt dr.  )
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cash a/c  ...dr. 12000
bad debts a/c...dr. 8000
       to debtor a/c   20000
(being only 12000 realised from the debtor and the remaining amount treated as bad debts)
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