what will be the effect of this adjustment in retirement chapter of accountancy class 12 ....??
A debtor whose due of rs. 5000 were written off as bad debts last year..paid rs.4000 in full settlement..
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Dear Student,
Bad-debts recovered will have the following two effects:
a. Credit the Revaluation a/c as Bad Debts recovered with the amount Rs. 4000
b. Add the received amount Rs. 4000 to the Cash balance on the Assets side of the Balance Sheet.
Regards
Dear Student,
Bad-debts recovered will have the following two effects:
a. Credit the Revaluation a/c as Bad Debts recovered with the amount Rs. 4000
b. Add the received amount Rs. 4000 to the Cash balance on the Assets side of the Balance Sheet.
Regards