Accounting journal entry

Q1- Sushil kumar has compounded with his creditors. I have accepted acomposition of 62p in the rupee on a debt of Rs.4800 due from him.

Q2- sunil kumar compounded with his debtors. Accepted a composition of 35p in the rupee out of a debt of Rs.1000.

Replies (8)

1) Sundry  Creditors  A/c   Dr                4800/- 

     To  Bank                      A/c    Cr                           2976/-

     To  Sundry creditors written off    A/c  Cr                           1824/- 

(  Payment  to sundry  creditors  0.62  out of 1 rupee , balance written off ) 

 

2)  Bank                          A/c    Dr         350

     Bad debts                  A/c    Dr         750

     To  sundry debtors      A/c               Cr                 1000

(  Payment  received  0.35  out of rupee form debtors balance bad debts ) 

At the end of the year  bad debts & creditors  written off  will be  transfer to profit & loss a/c  

 

    

 

There can be no account under the
Nomenclature
sundry creditors written off....

Mr  Mukherjee  will  you  please elaborate  ?.  Nomenclature ?. 

Sundry creditors are written off..
you can initially dr. bad debt account in case of debtors.
first provide for the debtors.
Prasad if u cant understand call me.

@   Dear Mr  Mukherjee   Why   should  I call  you  , If  you think  any thing wrong  then  please  explain  bellow  details . bad debts and sundry creditors  two different cases . 

Prasad dont get excited.
chill....

I’m not sure about written off, to me,  compounding is interest payable and 

creditors dr. 4800

interest dr. 2976

To Bank 4800+2976

 

Similarly,

bank dr. 1350

To interest received 350

To receivables / debtors 1000

 

Assuming that it’s full and final settlement. 

 

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