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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
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Answer Posted / amaranath
when you give loan for 1000 rs the entry will be
loan a\c dr 1000
to cash a\c 1000
when he returns 600 rs the entry will be
cash a\c dr 600
to loan a\c 600
remaing balance shown
bad debts a\c dr 400
to cash a\c 400
| Is This Answer Correct ? | 2 Yes | 2 No |
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