Question

17. Opening balance of debtors Rs.50,000, cash received from the debtor's
Rs. 2,00,000, credit sales Rs. 3,00,000. Find out the closing balance of debtors​

Answer 1

Answer:

Explanation:

The calculation is as under:

Opening balance - cash collection + Credit sales - Bills Receivable received - discount allowed.

Rs.50,000-Rs.30,000+Rs.80,000 - Rs.40,000-Rs.300 = Rs.44,700

Note 1: If cash sales is Rs.20,000 which is 20% of total sales, hence 80% is credit sales i.e Rs.80,000.

Note 2: Discount allowed is 1% of cash collection , cash collected is Rs.30,000 , 1% of which is Rs.300.

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