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%?
Option 1: Rs 3,80,000
Option 2: Rs 3,65,000
Option 3: Rs 3,65,750
Option 4: Rs 3,95,000
Correct Answer: Rs 3,80,000
Solution : Answer = Rs 3,80,000.
Debtors | 5,00,000 |
(-)Bad debts | (1,00,000) |
4,00,000 | |
(-)5% discount | 20,000 |
3,80,000 |
Hence, the correct option is 1.