The collection programme of
the firm, may consist of the
following: (i) Monitoring the
state of receivables (ii)
Dispatch of letters to
customers whose due date is
approaching (iii) Telegraphic
and telephonic advice to
customers around the due
date (iv) Threat of legal
action to overdue accounts
(v) Legal action against
overdue accounts
Answers
Answer:
2005
eptember 1. Started business with Rs. 100,000, paid into Bank Rs. 40,000,
2. Bought furniture for Rs. 10,000 and machinery for Rs. 20,000
3. Purchased goods for Rs. 28,000.
6. Sold goods for Rs. 16,000.
8. Purchased goods from Ishtiaq & Co. Rs. 22,000.
10. Paid telephone rent for the year by cheque Rs. 1,000.
11. Bought one typewriter for Rs. 4,200 from Universe
Typewriter Co. on credit.
15. Sold goods to Khurram for Rs. 24,000.
17. Sold goods to Ajmal for Rs. 4,000 for cash.
19. Amount withdrawn from bank for personal use Rs. 3,000.
20. Withdrew from bank for business use Rs. 7,000.
21. Received cash from Khurram Rs. 23,800, discount allowed Rs. 200.
22. Paid into bank Rs. 11,600.
25. Goods worth Rs. 2,000 found defective were returned to Ishta
& Co. and the balance of the amount due to them was settle
by issuing a cheque in their favour.
28. Bought goods worth Rs. 4,200 from Aslam and supplied then
to Akram at Rs. 6,000.
30. Akram returned goods worth Rs. 200, which in turn were se
to Aslam at Rs. 140.
30. Issued a cheque for Rs. 2,000 in favour
Explanation:
Among the various options given in question statement, all the options are the operational methods of a firm collection department.
The main objective of firm collection department is to ensure efficient and timely collections of debtors. They also aim to identify and settle the bad contributors keeping in view that they they facilitate all sort of customers. Hence all given options are just different methods to cover up the late debtors