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


(Guest)

A company sold goods on credit of the value ₹ 500000 on 1st May 2009 to a party 
named Z Ltd. paid ₹ 250000 on 25th August 2009. On 12th Dec 2009 Z Ltd. refused to 
pay balance amount and it becomes bankrupt. During the financial year 2009-10,pass journal entries.and state AS


 3 Replies


(Guest)

Pls someone solve it😭

prasad Nilugal (Sr . Accountant and GST Practitioner . )   (7056 Points)
Replied 23 October 2021

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 .

(Guest)
Originally posted by : Sandeep Yadav
 

 


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