Question
An amount received from Seema, whose account was
previously written off as Bad Debts, should be debited to:Solution
When an amount is received from a debtor whose account was previously written off as Bad Debts, it is recorded as a recovery of bad debts. The entry would typically involve crediting the Bad Debts account to reverse the earlier write-off and debiting the Cash Account (or Bank Account) to reflect the cash received. So, the correct entry would be: Debit: Cash Account Credit: Bad Debts Recovered Account
Training of Rural Youth for Self Employment (TRYSEM) was launched in the year
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