bad debts recovered

[123add1]

hello.if a question states that a person whose debt was previously written off as bad and it amounted to 1500 pkr.now after two years the person paid 800 pkr to the business.now i want to know that how much will go to income statement as expense and/or revenue.plz help

 

[ks136]

hello.if a question states that a person whose debt was previously written off as bad and it amounted to 1500 pkr.now after two years the person paid 800 pkr to the business.now i want to know that how much will go to income statement as expense and/or revenue.plz help

entry for bad debt is:

Transaction Entry

Cash a/c dr 800
bad debts recovered 800
(being B.D recovered)

Transfer entry

Bad debts recovered a/c dr 800
To P&L a/c 800
(Being B.D recovered
transferred to P&L a/c)


so 800 will go to other income in profit and loss account