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Updating Financial Statements

Amount Which ...

Question

Amount Which Is Not Recoverable From Customer Is Known As

A

Bad Debts

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B

Debts

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C

Debtors

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D

Doubtful Debts

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Solution

The correct option is A
Bad Debts

The correct answer is (A) Bad Debts.

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Similar questions

Q. Select the most appropriate alternatives from those given below and rewrite the statements :

Amount which is not recoverable from customer is known as _____.
a) Debts
b) Debtors
c) Bad Debts
d) Doubtful debts.

Q. Give the word / term or phrase which can substitute each of the following statement.

The amount which is not recoverable from debtors.

Q. The following Trial Balance was extraced from the books of Mr. Gupta as at 31st March, 2014:

Dr. Balances			(₹)	Cr. Balances	(₹)
Stock on 1-4-2013			65,000	Capital	2,50,000
Purchases			7,10,000	Rent Received	3,900
Wages			22,000	Loan from Mr. Yadav @ 15% p.a.	20,000
Trade Expenses			5,000	Sales	9,50,000
Freight and Dock Charges			8,000	Discount	600
Travelling Expenses			3,800	Outstanding Wages	2,000
Lighting and Heating (Factory)			7,200	Trade Expenses accrued but not paid	500
Stores Consumed			2,000	Sundry Creditors	80,000
Rent Paid			16,500
Establishment Charges			18,000
Interest on Mr. Yadav's Loan			1,500
Sundry Debtors			1,42,000
Cash			6,000
Fixed Assets			3,00,000

Adjustments:-
(i) Goods costing ₹ 20,000 were purchased and included into stock but no entry was passed to record the purchase.
(ii) Loan from Mr. Yadav was taken on 1st June, 2013.
(iii) Sundry Debtors include an amount of ₹ 2,000 due from a customer who has become insolvent and nothing is recoverable from his estate.
(iv) Create a provision of 5% for Doubtful Debts and 2% for discount on Debtors.
(v) Three months lighting and heating bill due but not paid ₹ 3,000.
(vi) Rent is paid for 11 months but is received for 13 months.
(vii) Stock amounted to ₹ 90,000 on 31st March, 2014.
Prepare Trading and Profit & Loss Account for the year ended 31st March, 2014 and a Balance Sheet as at that date.

Q. Amount which is not recoverable from customer is known as ___________.

Q. What is the term used to figure out the amount which is not recoverable from the debtors?

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