​An amount received from Seema, whose account was previously written off as Bad Debts, should be debited to:

Correct option is C

The correct answer is (c) Cash Account

Explanation:
• When a debtor (like Seema) previously written off as bad debt pays the amount later, cash is received.
• The amount is debited to Cash Account because it represents an inflow of money.
• Simultaneously, Bad Debts Recovered Account is credited since it’s treated as income.

Information Booster:
• Journal Entry:
→ Cash A/c — Dr.
→ To Bad Debts Recovered A/c
• Bad Debts Recovered is shown on the credit side of the Profit & Loss Account.
• It is an income, not a reversal of the earlier expense.
• Recovery of written-off bad debts improves profit for that period.
• Such recoveries occur due to delayed payments or improved financial condition of debtors.

Additional Knowledge:
• Option (a) Bad Debts Recovered A/c → Credited, not debited.
• Option (b) Seema’s A/c → Not used again since account was closed earlier.
• Option (d) Bad Debts A/c → Used when debt is written off, not when recovered.