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The debtors are Rs. 30,000 (before bad debts of Rs. 1,000 and provision of bad debts at 5%). A provision for discount on debtors @ 2% would be-
A
Rs. 600
B
Rs. 575
C
Rs. 571
D
Rs. 551
Correct Answer:
Rs. 551
On 31
st
March, 2019, total debtors are Rs. 25,000 and bad debts are Rs. 1,000 so if rate of discount on debtors is 2% and rate of provision for bad debts is 5% then the amount of discount on debtors will be
A
Rs. 456
B
Rs. 475
C
Rs. 480
D
Rs. 500
With the help of following information calculate provisions for bad and doubtful debts
Debtors M: Rs. 3,200 Bad to be written off
Debtors N: Rs. 8,000 expeected to realise only 70%
Debtors O: Rs. 6,000 expected to realise only 60%
Debtors P: Rs. 4,000 financial condition very poor, no recovery is likely
A
Rs. 8,800
B
Rs. 12,000
C
Rs. 4,800
D
Rs. 4,000
A company has trade debtors at the year-end amounting to Ta. 2,18,000. One of the debtors, value TA. 8,000 is known to be uncontrollable. The company takes a 5% provision for bad debts each year and last year's provision amounted to TA. 2,000 which of the following figures will appear in the profit and loss account as the total bad debt charge for the year?
A
TA. 18,900
B
TA. 18,500
C
TA.16,300
D
TA. 10,500
A company has trade debtors at the year-end amounting to TA. 2,18,000. One of the debtors, value TA. 8,000 is known to be noncollectable, The company takes a 5% provision for bad debts each year and last year's provision amounted to TA. 2,000. Which of the following figures will appear in the profit and loss account as the total bad debt charge for the years?
A
TA. 18,900
B
TA. 18,500
C
TA. 16,300
D
TA, 10,500
Determine the debtors turnover ratio if, closing debtors is Rs. 40,000, cash sale is 25% of credit sales, and excess of closing debtors over opening debtors is Rs. 20,000.
A
4 times
B
2 times
C
6 times
D
8 times
Net credit sales of business was Rs. 1,75,000. Debtors Turnover ratio is 8 times. Closing debtors were in excess of opening debtors by Rs. 7,000. Opening debtors will be
A
Rs. 18,375
B
Rs. 21,875
C
Rs. 25,375
D
None of the above
In an organization, provision for Bad debts is Rs. 5,000 in the beginning. At the end total sales is Rs. 6,00,000 out of which Rs. 1,00,000 is cash sales. 1% provision is to be created on remaining debtors. The amount to be debited to profit and loss account in respect of provision is.
A
Rs. 6,000
B
Rs. 5,000
C
Rs. 1,000
D
Zero
Propositions are
1. A son is liable, before partition, for the debts contracted by his father before partition which are not immoral or illegal.
2. A son is liable, after partition, for the debts contracted by his father before partition which are not immoral or illegal.
3. A son is liable, after partition, for the debts contracted by his father after partition which are not immoral or illegal which of the following is true in respect of the aforesaid propositions.
A
1, 2 & 3 all are correct
B
1 is correct and 2 & 3 are not correct
C
1 & 2 are correct and 3 is not correct
D
1 & 2 are not correct and 3 is correct
Making the provision for bad and doubtful debts in anticipation of actual bad debts is on the basis of:
A
Convention of disclosure
B
Convention of consistency
C
Convention of conservatism
D
Convention of disclosure and consistency
A Business shows total debtors' balance TK. 4,00,000 in its sales ledger at the end of its financial period . One customer owing TK. 40,000 is bankrupt and there is on possibility of getting the debt paid. A further 2% of debtors are considered doubtful . What debtors' total will be included as a current asset in the balance sheet ?
A
TK. 4,00,000
B
TK. 3,52,800
C
TK. 3,52,000
D
TK. 36,200