Question { OPI Global, 18298 }

You give a loan for your friend a 1000 rs he returns 600 rs
and u have to close ur accounts what should u do to close
the accounts? and given the journal entry for 400 rs?and
where will the 400 rs come in new account and entry for that

Answer

at the time of giving the loan the entry will...

loan a/c dr 1000
to cash a/c 1000

when he get back 600 rs

cash a/c dr 600
to loan a/c 600


when you hav to take 400 to next year the entry will be


reserve for bad debt a/c dr 400
to loan a/c 400