Multiple choice

The entry ''Sold goods worth Rs. 80,000 to R.K.Traders plus VAT @ 4%'' is passed in the books. After sometime, R.K.Traders becomes insolvent. Only 60% amount is recovered from R.K.Traders. How much amount will be transferred to Bad Debt A/c?

  1. Rs. 32,000

  2. Rs. 48,000

  3. Rs. 33,280

  4. Rs. 49,920
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The amonut of sales Rs. 80,000 & 40% amount not recovered; so 40% of 80,000 = 32,000 transfer to Bad Debt A/c.

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