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CA Foundation · Accounting · Accounts from Incomplete Records

Opening debtors of a firm were Rs 1,20,000. During the year, credit sales were Rs 6,00,000, cash received from debtors was Rs 5,20,000, and a customer's cheque of Rs 10,000 earlier received was dishonoured. Discount allowed was Rs 8,000 and bad debts were Rs 12,000. What is the closing debtors balance?

Closing debtors are Rs 1,90,000. Debit side is opening 1,20,000, credit sales 6,00,000 and dishonoured cheque 10,000, totalling 7,30,000. Credits are cash 5,20,000, discount 8,000 and bad debts 12,000, totalling 5,40,000. The balancing figure is 1,90,000.

  1. ARs 1,90,000Correct
  2. BRs 1,70,000
  3. CRs 1,80,000
  4. DRs 2,10,000

Explanation

Debit side: 1,20,000 + 6,00,000 + 10,000 dishonour = 7,30,000. Credit side before closing: 5,20,000 + 8,000 + 12,000 = 5,40,000. Closing = 7,30,000 - 5,40,000 = 1,90,000. Ignoring the dishonour gives 1,80,000, which is wrong.

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