Question

On the date of dissolution, the firm had debtors amounting to ₹ 3,00,000 and provision for doubtful debts of ₹ 30,000. Debtors for ₹ 20,000 proved bad and the remaining debtors realised 90%. Amount realised from the debtors will be: 

Options

• ₹ 3,00,000

• ₹ 2,25,000

• ₹ 2,80,000

• ₹ 2,52,000

Answer 1

₹ 2,52,000

Explanation:

Given:

Debtors = ₹ 3,00,000

Provision for doubtful debts = ₹ 30,000

Bad debts = ₹ 20,000

Remaining debtors realized 90%

Debtors remaining = 3,00,000 − 20,000 = 2,80,000

Amount realised = 90% of 2,80,000 = 2,80,000 × 0.9

= 2,52,000