CMA Intermediate · Financial Accounting · Branch (including Foreign Branch) and Departmental Accounts
Delhi Traders' Chennai branch had opening debtors of Rs 40,000 and closing debtors of Rs 55,000. Credit sales for the year were Rs 3,20,000. Cash received from debtors, with no returns, discounts or bad debts, was:
Cash received from debtors is Rs 3,05,000. Opening debtors of Rs 40,000 plus credit sales of Rs 3,20,000 total Rs 3,60,000, and subtracting closing debtors of Rs 55,000 leaves the amount collected during the year.
- ARs 3,05,000Correct
- BRs 3,35,000
- CRs 2,65,000
- DRs 3,75,000
Explanation
Branch Debtors Account: opening 40,000 + credit sales 3,20,000 = 3,60,000. Less closing debtors 55,000 gives cash received of 3,05,000. Adding the increase in debtors instead (3,35,000) is the sign error.
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