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CA Foundation · Accounting · Accounts from Incomplete Records

In converting single entry to double entry, the Total Debtors Account shows opening balance Rs 40,000, credit sales Rs 3,00,000, cash received from debtors Rs 2,50,000, discount allowed Rs 5,000 and bad debts Rs 3,000. The closing debtors balance is:

Closing debtors are Rs 82,000. Opening debtors plus credit sales total Rs 3,40,000, and cash received, discount allowed and bad debts together reduce this by Rs 2,58,000, leaving Rs 82,000 as the balancing figure.

  1. ARs 82,000Correct
  2. BRs 92,000
  3. CRs 88,000
  4. DRs 3,00,000

Explanation

Debit side: 40,000 + 3,00,000 = 3,40,000. Credit side: cash 2,50,000 + discount 5,000 + bad debts 3,000 = 2,58,000. Closing = 3,40,000 - 2,58,000 = Rs 82,000. Rs 92,000 omits discount and bad debts' effect partly (ignores 10,000 error), as it deducts only cash 2,50,000 less nothing else wrongly.

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