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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.

Correct Answer: Zero

On 31st 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 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 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?

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

"BDL Ltd. is currently preparing its cash budget for the year to 31 March 20XX. An extract from its sales budget for the same year shows the following sales values.
Rs
March 60,000
April 70,000
May 55,000
June 65,000
40% of its sales are expected to be for cash. Of its credit sales, 70% are expected to pay in month after sale and take a 2% discount. 27% are expected to pay in the second month after the sale, and the remaining 3% are expected to be bad debts. The value of sales budget to be shown in the cash budget for May 20XX is"

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-

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.

Cash sales during the year - Rs. 46,000
Cash collected from customers during the year - Rs. 1,26,000
Amount regarded as collected from the customers at the end of the year decreased by Rs. 4,940 as compared to the collectable amount at the beginning of the year. One account of the amount of Rs. 1,300 was determined worthless during the year. The amount of credit sales during the year was

Stock Rs. 14,000; Debtors Rs. 20,000: Creditors Rs. 20,000; Credit balance of profit and loss account at the beginning of the year Rs. 18,000; administration and selling expenses Rs. 20,000; 10% dividend on equity capital Rs. 3,000.
The following ratios are also given:
Stock turnover: 5 times
Current ratio 2 : 1
Debtors collection period: 73 days
Outstanding expenses: 15% of creditors
Ratio of net profit after tax to net tangible assets is 1: 10
Rate of Income tax: 5%
Ratio of fixed assets to paid up capital is 9: 10.
The total assets of the firm are:

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