Question

If sundry debtors is Rs.2,20,000 , irrecoverable debts is Rs.10,000

and loss on sale of motor car is Rs.30,000 , then the net debtors

is………………..​

Answer 1

Answer:

Balance of debtors in Balance sheet :-

= Opening balance - bad debts - Provision for doubtful debts and discount

= 20,000 - 1000 - 950(WN 1) - 361(WN 2)

= Rs-17,689.

Working notes:-

1) Provision for doubtful debts :-

= 19,000 x 5/100

= Rs-950.

2) Provision for discount on debtors :-

= (19,000 - 950) 18,050 x 2/100

= Rs-361.

Explanation:

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