Question

In a firm's Balance Sheet, Total Debtors were appearing at ₹ 5,00,000 and provision for doubtful debts appeared at ₹ 10,000. On dissolution, bad debts were ₹ 1,00,000 and the remaining debtors were realised at 10% discount. How much amount was realised from debtors?

Answer 1

Total Debtors = ₹ 5,00,000

Less: Bad Debts = ₹ 1,00,000

Remaining Debtors = ₹ 4,00,000

Amount realised at 10% discount:

₹ 4,00,000 × 90% = ₹ 3,60,000

Amount realised from debtors = ₹ 3,60,000