Question

Extract of trial balance of Mr. Q is as follows.

Particulars	Dr. Rs.	Cr. Rs.
Sundry debtors	$1,00,000$	-
Sundry creditors	-	$78,000$

Additional information:
Included in sundry debtors Rs. $5,000$ due from Mr. A. Included in sundry creditors Rs. $2,000$ payable to Mr.A.
Sundry debtors and creditors will appear in balance sheet at __________ & Rs. ___________.

• A. $97,000;75,000$
• B. $98,000;76,000$
• C. $95,000;76,000$
• D. $98,000;72,000$

Answer 1

The correct option is B $98,000;76,000$

Since Rs.5000 due from Mr. A included in Sundry Debtors and Rs.2000 payable to Mr. A is included in Sundry Creditors. Hence Rs.2000 is a common adjustment amount which need to be deducted from Sundry Debtors and Sundry Creditors account by passing an accounting entry:

Sundry Creditors A/c Dr.

To Sundry Debtors A/c

Hence revised figures to be shown in balance sheet:

Sundry Debtors Rs.100000-Rs.2000= Rs.98000

Sundry Creditors Rs.78000-Rs.2000= Rs.76000.