Advertisements
Advertisements
Question
From the following information ascertain the opening balance of sundry debtors and closing balance of sundry creditors
|
|
Rs |
|
Opening stock |
30,000 |
|
Closing stock |
25,000 |
|
Opening creditors |
50,000 |
|
Closing debtors |
75,000 |
|
Discount allowed by creditors |
1,500 |
|
Discount allowed to customers |
2,500 |
|
Cash paid to creditors |
1,35,000 |
|
Bills payable accepted during the period |
30,000 |
|
Bills receivable received during the period |
75,000 |
|
Cash received from customers |
2,20,000 |
|
Bills receivable dishonoured |
3,500 |
|
Purchases |
2,95,000 |
The rate of gross profit is 25% on selling price and out of the total sales Rs 85,000 was for cash sales.
(Hint: Total sales = 4,00,000 = 3,00,000 × 100 × `100/75`)
Advertisements
Solution
|
Sundry Debtors Account |
||||
|
Dr. |
Cr. |
|||
|
Particulars |
Amount |
Particulars |
Amount |
|
|
Balance b/d |
54,000 |
Discount Allowed |
2,500 |
|
|
(Balancing figure) |
B/R (received) |
75,000 |
||
|
B/R (dishonoured) |
3,500 |
Cash |
2,20,000 |
|
|
Sales—Credit |
3,15,000 |
|||
|
Balance c/d |
75,000 |
|||
|
3,72,500 |
3,72,500 |
|||
|
Sundry Creditors Account |
||||
|
Dr. |
Cr. |
|||
|
Particulars |
Amount |
Particulars |
Amount |
|
|
Discount Received |
1,500 |
Balance b/d |
50,000 |
|
|
Cash |
1,35,000 |
Purchases – credit |
2,95,000 |
|
|
B/P (accepted) |
30,000 |
|||
|
Balance c/d |
1,78,500 |
|||
|
(Balancing figure) |
||||
|
3,45,000 |
3,45,000 |
|||
Opening balance of debtors is Rs 54,000 and the closing balance of creditors is Rs 1,78,500.
Working Notes:
Total Sales = Cash Sales + Credit Sales
Total Sales = Cost of Goods Sold + Gross Profit
Cost of Goods Sold = Opening Stock + Purchases – Closing Stock
= 30,000 + 2,95,000 – 25,000
= Rs 3,00,000
Let sales be 100%
Sales = Cost of Goods sold + Gross Profit
Or
100 = Cost of Goods sold + 25%
Cost of Goods Sold = 100% - 25% = 75%
Gross Profit = `"Cost of Good Sold"/"% of Cost of Goods" xx % "of Gross Profit"`
= `(3,00,000)/75 xx 25`
= 1,00,000
Sale = Cost of Goods Sold + Gross Profit
= 3,00,000 + 1,00,000
= 1,00,000
Total Sales = Cash Sales + Credit Sales
Or = 85,000 + Credit Sales
Or, Credit = 4,00,000 – 85,000
Sales = Rs 3,15,000
Note:
Here, it has been assumed that all purchases were made on credit.
