Question

In the Balance sheet Total Debtors appear at Rs.60000 and Provision for Doubtful debt

appear at Rs.2500. How much amount will be realized from Debtors, if bad debt amount to

Rs.20000 and remaining debtors are realized at a discount of 10%.​

Answer 1

Answer:

To calculate the amount that will be realized from the debtors, you need to subtract the bad debt amount from the total debtors, and then apply the discount to the remaining amount.

First, subtract the bad debt from the total debtors: 60000 - 20000 = 40000

Then, apply the 10% discount to the remaining amount: 40000 x 90% = 36000

So, the amount that will be realized from the debtors is Rs. 36000.