On 31 March 2013, there is an unsecured loan of ` 8,00,000 to Shri Pankaj in the loan ledger of a Sona Bank. It is found on enquiry that the financial position of the borrower is bad and doubtful. Interest on the said loan has accrued ` 80,000 and is yet to be recorded. During 2013-14, the bank is able to realise only 80% of the outstanding amount on account of customer's bankruptcy. Show how the transactions would be recorded in the books of the Sona bank.

Answer rating: 100% (QA)

The transactions will be recorded in the books of Sona Bank as follows 1 At the end of 31st March 20... View the full answer