Following information relates to Mr. Prem who maintains his books under single entry system. He is not able to ascertain the amount of bad debts…
CA Foundation · Accounting · PYQS · September 2024
Following information relates to Mr. Prem who maintains his books under single entry system. He is not able to ascertain the amount of bad debts incurred by him and seeks your help. Debtors as on 01.04.20236,50,000 Debtors as on 31.03.20248,50,000 Sale for Financial Year 2023-2024 is 16,00,000 out of which80% is on credit. Payment received during the year is 7,50,000 out of which cheques of 18,000 were dishonored. Bills of exchange accepted by customers - 2,90,000 Discount allowed is 1% of the credit sale.
Suggested Answer and Working Notes:
Debtors Account Particulars Amount Particulars Amount To Balance b/d 6,50,000 By Bank A/c 7,32,000 To Credit Sales 12,80,000 By Discount allowed 12,800 By Bills Receivable 2,90,000 By Bad Debts (Bal fig) 45,200 By Balance c/d 8,50,000 19,30,000 19,30,000
Topics: Accounts from Incomplete Records, Depreciation and Amortisation
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