Debtors

Q.

Mr. A has bought goods worth Rs 1, 00, 000 from Mr. B on credit. Which of the following is true?

1. Mr. B is a debtor of Mr. A

2. Both A and B

3. None of the above

4. Mr. A is a debtor of Mr. B

Q.

From the following Trial Balance of M/s Andrew Traders, you are required to prepare Trading and Profit Loss Account for the year ending 31st March, 2010 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2010
Particulars	Debit Amount Rs	Credit Amount Rs
Capital		35, 000
Drawings	8, 000
Purchases and Sales	29, 000	56, 000
Opening Stock	10, 000
Carriage	1, 000
Salaries	3, 500
Rent	1, 200
Rates and Taxes	200
Sundry expenses	3, 000
Sales Return	1, 500
Bad debts	800
Interest received		200
R.D.D.		1, 500
Discount received		300
Debtors and Creditors	21, 400	7, 000
Furniture	3, 000
Machinery	5, 000
Cash in hand	200
Cash at Bank	5, 000
Wages	7, 200
Total	1, 00, 000	1, 00, 000

Q.

Mr. X has borrowed a sum of Rs 10, 000 from Mr. Y who has a business of selling pulses. Which of the following is correct?

1. Mr. X is a debtor

2. Both A and B

3. None of the above

4. Mr. Y is a creditor

Q.

Aashirwad draws on Aakarshak a bill of exchange for 3 months for 10, 000 which Aakarshak accept on January 01, 2011. Aashirwad endorses the bill in favour of Aakriti before maturity. Aakkarshak approaches Aashirwad with the request that the bill is renewed for a further period of 3 months @ 18% p.a. interest. Aashirwad pays the sum to Aakriti on the due date and agrees to the proposal of Aakarshak. Record-Journal Entries in the books of Aashirwad assuming that the second bill is duly met.

Q.

Trial Balance as on 31st March, 2011
Particulars	Amount Rs	Particulars	Amount Rs
Drawings	3, 000	Capital	85, 000
Opening Stock	10, 000	Creditors	45, 000
Purchases	82, 400	Sales	1, 44, 000
Office Salary	6, 000	R.D.D.	1, 000
Royalty	2, 000	Return outward	2, 400
Trade Expenses	1, 600	Bills Payable	5, 000
Advertisement	5, 200	Outstanding wages and salaries	2, 600
Wages and Salaries	10, 400
Cash in hand	8, 000
Sundry Debtors	51, 000
Bad debts	400
Investment	16, 000
Motor Car	30, 000
Furniture	10, 000
Office rent	3, 400
Plant and Machinery	30, 000
Freehold Property	10, 000
Bills Receivable	4, 000
Interest	1, 600
Total	2, 85, 000	Total	2, 85, 000

Q. Explain the credit creation role of commercial banks with the help of a numerical example.

Q.

Last year Ram had borrowed a sum of Rs 20, 000 from his friend Mr. Ravi which is still not paid by Ram. Now, Ram has purchased goods from Ravi worth Rs 10, 000 for which he has promised to pay him next week. What will be the value of debtors in the books of Ravi, if there are debtors of Rs 50, 000 already in the books?

1. Rs 60, 000

2. Rs 50, 000

3. Rs 70, 000

4. Rs 20, 000

Q.

Analyse the following situation & compute the value of debtors to be recorded in the books.
1 Amounts receivable until last day of the year Rs 2, 00, 000
2 Credit sales on the last day of the year Rs 10, 000
3 Cash sales on the last day of the year Rs 50, 000

1. Rs 2, 10, 000

2. Rs 2, 40, 000

3. Rs 1, 98, 000

4. Rs 2, 00, 000

Q. Give the word term or phrase which can substitute each of the following statements :

A person to whom amount is payable.

Q.

Which of the following statement is correct?

1. Debtors increases with increase in credit sales

2. None of the above

3. Not sure

4. Debtors increases with increase in sales

Q. Calculate the Sales.

1. 8632
2. 109990
3. 95162
4. 71702

Q.

Following is the Trial Balance of M/s Tejas Traders Pune, you are required to Prepare Trading, Profit & Loss Account for the year ending 31st March, 2009 and Balance Sheet as on that date.

Trial Balance as on 31st March, 2009
Particulars		Amount Rs	Particulars	Amount Rs
Carriage Opening Stock Loose tools Salaries Wages Printing and stationery Discount Omission Power and fuel Vehicle Bad debts Building Debtors Goodwill Cash at Bank Machinery Investment Purchases Drawings		2, 000 31, 000 2, 000 2, 100 1, 000 2, 000 500 1, 000 4, 500 28, 000 1, 900 35, 000 20, 000 2, 000 10, 800 10, 000 12, 000 61, 000 5, 000	Capital Sales Interest Bills payable Commission R.D.D. Creditors Outstanding salary	80, 000 1, 18, 000 2, 200 5, 000 3, 000 800 22, 000 800
Total		2, 31, 800	Total	2, 31, 800