A company sold goods on credit of the value ₹ 500000 on 1st May 2009 to a party named Z Ltd. paid ₹

Pls someone solve it😭

Booking entry
on 1/5 /2009

Z Ltd A/c Dr 500000/-
To sales A/c Cr 500000/-
( sale to Z Ltd )

when you received part payment on
25/8/2009

Bank A/c Dr 250000/-
To Z Ltd. A/c Cr 250000/-
( part Payment received )

on 12/12 /2009 pass entry of Bad Debts

Bad Debts A/c Dr 250000/-
To Z Ltd. A/c Cr. 250000/-
( Z Ltd become bankrupt , unable to pay balance payment hence Bad Debts )

I think AS 9( Revenue recognition) will applicable , please confirm .

Originally posted by : Sandeep Yadav