The journal entry of second entry.
Dear Student,
The journal entries are as follows.
Note:
(i) Debtors will be debited with Rs 30,000 to Realisation A/c, Provision for Bad Debts will be credited with Rs 5,000 to Realisation A/c and Debtors worth Rs 22,000 (gross debtors minus bad debts) will be credited to Realisation A/c.
(ii) Creditors will be paid the amount shown in the Balance Sheet i.e. Rs 20,000. So, once creditors will be shown on the credit side of Realisation A/c and then they'll be paid on the debit side of Realisation A/c.
The journal entries are as follows.
| Journal | |||||
| Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) |
|
| (i) | Bank A/c | Dr. | 22,000 | ||
| To Realisation A/c | 22,000 | ||||
| (Debtors realized) | |||||
| (ii) | Realisation A/c | Dr. | 20,000 | ||
| To Bank A/c | 20,000 | ||||
| (Payment to creditors) | |||||
Note:
(i) Debtors will be debited with Rs 30,000 to Realisation A/c, Provision for Bad Debts will be credited with Rs 5,000 to Realisation A/c and Debtors worth Rs 22,000 (gross debtors minus bad debts) will be credited to Realisation A/c.
(ii) Creditors will be paid the amount shown in the Balance Sheet i.e. Rs 20,000. So, once creditors will be shown on the credit side of Realisation A/c and then they'll be paid on the debit side of Realisation A/c.
