Question : What will be the Sundry debtors if, Debtor velocity = 6 months; Sales Rs.50,00,000; Bills receivable & bills payable were Rs.6,00,000 and Rs.36,667 respectively.
Option 1: Rs.19,00,000
Option 2: Rs.29,00,000
Option 3: Rs.25,00,000
Option 4: None of the above
Correct Answer: Rs.19,00,000
Solution :
6 = X/50,00,000 × 12
x = Account receivable = 25,00,000
Debtors + Bills receivable = Account receivable
x + 6,00,000 = 25,00000
x = Debtors = 19,00,000
Hence option 1 is the correct answer.