Question :
An old customer, whose account was written off as bad debts has promised to pay Rs. 15,000 in full settlement of his account of Rs.25,000. The value of sundry debtors will be.
Option 1: Increased by Rs 15,000
Option 2: Decreased by Rs 15,000
Option 3: Increased by Rs 25,000
Option 4: Decreased by Rs 25,000
Correct Answer: Increased by Rs 15,000
Solution :
Answer = Increased by Rs 15,000
Sundry debtors will be increased by Rs 15000
debtor A/c Dr 15000
To Revaluation 15000 Hence, the correct option is 1.
Select the
Question : At the time of dissolution of a firm, Debtors were Rs. 34000 out of which Rs. 1000 became bad and the rest realised 60%. Which account will be debited and by how much amount?
Question : In the Balance Sheet, Total Debtors appear at Rs.5, 00,000 and Provision for Doubtful Debts appears at Rs. 1,50,00. How much amount will be realised from Debtors if bad debts amount to Rs. 1,00,000 and remaining debtors are realised at a discount of 5%?
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