What is a journal entry for the insolvency of a debtor?
Insolvency of a debtor means bankruptcy of debtor.However there might be two conditions thenNo amount is recovered from themPartial amount is recovered from them.The amount which is not paid by debtors is loss to the business called bad bebts.Let take an example:A debtor amounting Rs50000 became insolvent and nothing was recovered from his estate.*Bad-DebtsA/c Dr. 50000To DebtorA/c ………………. 50000*P&L A/c Dr. 50000To Bad-DebtsA/c……………500002. A debtor amounting Rs50000 became insolvent and only 40% was recovered from his personal estate.*Cash/BankA/c Dr. 20000Bad-DebtsA/c Dr. 30000To Debtors A/c…………….50000*P&L A/c Dr. 30000To Bad-Debts A/c…………30000
What is the journal entry for bad debts recovered?
What is the bad debt recovered?Journal entry for bad debts recovered with the golden rule.Journal entry for bad debts recovered under the modern rule.1. What is b/debt recovered?The b/debt recovered is that amount which was written as bad debts in a previous financial year and received in a current financial year. It is treated as income/gain of business in this year because in a previous financial year it was written as bad debt and loss/expanse was claimed.2. Journal entry for b/debts recovered with the golden rule:Example 1:01/01/2018 received Rs 5,000/- written as bad debts in 2016/17.Cash A/c -> Assets A/c – > Real Rule -> Received cash -> DebitB/Debts recovered -> Gain A/c -> Nominal A/c -> gain -> CreditThe journal entry for the transaction is the following:B/debts recovered journal entry3. Journal entry for b/debts recovered under the modern rule:Example 1:01/01/2018 received Rs 5,000/- written as bad debts in 2016/17.Cash A/c -> Assets A/c – > assets Rule ->increase in assets -> DebitB/Debts recovered -> Gain A/c -> income A/c -> increase in income -> CreditThe journal entry for the transaction is the following:Read More ………please also check out for more related topics of financial accounting for the following website link.TutorsTips-Learn Financial Accounting and Goods and Services Tax
What is a Debtor And creditor and the 3 c's of credit?
debt·or –noun a person who is in debt or under financial obligation to another (opposed to creditor). Cred .i .tor –noun 1. a person or firm to whom money is due (opposed to debtor). 2. a person or firm that gives credit in business transactions THE THREE C'S OF CREDIT Character: refers to how a person has handled past debt obligations: From the credit history and personal background, honesty and reliability of the borrower to pay credit debts is determined. Capacity: refers to how much debt a borrower can comfortably handle. Income streams are analyzed and any legal obligations looked into, which could interfere in repayment. Capital: refers to current available assets of the borrower, such as real estate , savings or investment that could be used to repay debt if income should be unavailable. CAMEL is a tool sometimes used for assessing credit-worthiness of a borrower. CAMEL refers to: C: Capital A: Assets M: Management E: Equity L: Liquidity
A quick ratio much smaller than the current ratio reflects ...?
Current ratio = current assets divided by current liabilities Quick ratio = (current assets minus inventory) divided by current liabilities. If the quick ratio is a lot lower than the current ratio it means that a large proportion of the current assets is inventory. A very low quick ratio can be bad news because these ratios are an indicator of liquidity (how easily the company can pay off it's current liabilities with it's current assets). If the quick raitio is low it means that before the firm can pay any creditors it must first sell some stock then collect payment from those debtors (could be 30 days), only then is the cash in the bank to pay the creditors.
What is the journal entry for the transaction of withdrawing RS 1200 from the bank?
If you are withdrawing the money for personal use and also you withdrawing cash then journal entry isdrawings a/c Dr.To cash a/corand if not for personal use thencash a/c Dr.To bank A/c
What do you mean by sundry debtors and sundry creditors in Tally.ERP 9? How do I fill these entries?
Hi,I have Solution For Your Question.Sundry Debtors is a person or business organisation who owes money to other party. Or in other words when you lend money or sell goods on credit to another party.That party become a debtor to us. Sundry debtor is a Current Asset and reported to the Asset side of balance sheet.To create Sundry Debtors LedgerGateway of tally >> Accounts info>>Ledgers>>CreateTo see outstanding documentGo to Pending Documents > Under Outstanding - Receivables > Press Alt + X to view Exceptions – you will get Sundry Creditors with Debit Balance.Sundry Creditors is just opposite of debtor.A creditor is a person, or organisation giving credit. or in other words creditor is one who lends money or sale goods on credit. he/Institution becomes creditor to the receiver or borrower. Sundry creditor is a Current Liabilities to hence shown in the Liability side of Balance sheet.To create Sundry Creditor LedgerGo to Gateway of Tally>Accounts Info>Ledgers>CreateTo see outstanding documentGo to Pending Documents > Under Outstanding - Payable > Press Alt + X to view Exceptions – you will get Sundry Debtors with Credit Balance.To know about tally please click on link given below:Tally Support App, Instant Support Download, Quick Support, SMS Module, Tally.ERP9 5.0
What is the journal entry for a payment to a creditor?
I would think it'd be something like this:Debit: Accounts payable to Creditor.............. $ xx Credit: Cash........................ $ xx*Good to remember: Debiting asset account increases the account / Crediting asset decreases the accountDebiting liability decreases the account / Crediting liability increases the accountAlso, I found accountingcoach.com as a great web resource for learning accounting!
Suicide because of debt?
right now I'm in debt: check boucing,car payments,payday loans,credit cards.and etc. I have 2 jobs.but every paycheck I get payday loans swallows it.it leaves me no money or most of the time negative balance on my bank account so there's no way I can pay the rest of my debt. the only help I can get is from my mother.I asked alot of times to take out a loan for me so I can fully pay everything and have a brand new start.she has a good credit score...but she won't say yes.she doesn't wanna help me.(I made this problem myself and she doesn't want me to involve her) I have no more options.I can't think of anything to do. I wanna suicide.maybe god can give me a brand new start on my next life. all I ask is a good advice to help me change my mind on suiciding.is there anyone who can help me? I have a bad credit so it's impossible.there's no way out.I'm in a great depression. please help.your words might save my life