Multiple choice

Sundry debtors of Mr. R amounts to Rs. 25, 000 and additional bad debts, not recorded Rs. 3, 000. R provides for doubtful debts @ 2% and for discount @ 1%. The amount of net debtors to be shown in the balance sheet will be

  1. Rs. 21, 560

  2. Rs. 22, 000

  3. Rs. 21, 780

  4. Rs. 21, 344
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Calculation: Debtors after bad debts = Rs. 25,000 - Rs. 3,000 = Rs. 22,000. Less provision for doubtful debts @ 2% = Rs. 22,000 - Rs. 440 = Rs. 21,560. Less discount @ 1% = Rs. 21,560 - Rs. 216 = Rs. 21,344. The provision and discount are calculated after writing off bad debts.

Keep practicing — related questions