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Neha's account in the ledger of Gupta Brothers shows: opening balance Rs 12,000 (debit), goods sold to her on credit Rs 30,000, goods returned by her Rs 4,000, and cash received from her Rs 18,000. What is the closing balance in her account?
The closing balance is Rs 20,000 debit. Neha's account is debited with the opening balance and credit sales, totalling Rs 42,000, and credited with returns and cash, totalling Rs 22,000. The excess of debits gives a debit balance of Rs 20,000.
- ARs 20,000 debitCorrect
- BRs 28,000 debit
- CRs 16,000 debit
- DRs 20,000 credit
Explanation
Debits: opening 12,000 + sales 30,000 = 42,000. Credits: returns 4,000 + cash 18,000 = 22,000. Balance = 42,000 - 22,000 = Rs 20,000 debit. Ignoring the returns gives Rs 24,000 and treating the opening as a credit gives other wrong figures; Rs 28,000 results from treating returns as a debit item incorrectly.
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