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Answer Posted / rajesh.s.m
Bad debt means ,amount due from the customer for quite some
time which severly affects the fund flow of Organisation
even to the extent of company close out.
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1. Fdr mature with interest
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Suppose My received Interest Income is 24934.59 And for the same time my Bank Charge total is 7785.19. Now the total Bank Charge will be deducted from Interest Income and the amount of (24934.59-7785.19)=17149.40 will be withdrawn to deposit in govt. Account.What will be the Journal Entry for 17149.40. Here, Already Bank Charge 7785.40 is Already Debited and 24934.59 is already credited in Journal.
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