gauri paid Rs 1000 towards a debt of Rs 1050 which was written off as bad debt in the previous - Fundamentals of Accounting - Bank Reconciliation Statement

Question

gauri paid Rs 1000 towards a debt of Rs 1050 which was written off
as bad debt in the previous year gauris account should be credited
with

Nikhil Sehgal · Accepted Answer

Hi,
The amount that has been written off as bad debts in previous years
if received later is considered as a gain for the firm The amount
so received is credited to a separate account called 'Bad Debts
Recovered Account' Accordingly, nothing would be credited to
Gauri's Accont The entry for recording above receipt is:

Cash/ Bank A/c Dr
xxx

To Bad Debts Recovered
A/c

xxx

gauri paid Rs 1000 towards a debt of Rs 1050 which was written off as bad debt in the previous year gauris account should be credited with