Question : From the following information ascertain the opening balance of sundry debtors and closing balance of sundry debtors and closing balance of sundry creditors
(Rs)
Opening stock $30, 000$
Closing stock $25, 000$
Opening creditors $50, 000$
Closing debtors $75, 000$
Discount allowed by creditors $1, 500$
Discount allowed to customers $2, 500$
Cash paid to creditors $1, 35, 000$
Bills payable accepted during the period $30, 000$
Bills receivable received during the period $75, 000$
Cash received from customers $2, 20, 000$
Bill receivable dishonored $3, 500$
Purchases $2, 95, 000$

The rate of gross profit is $25 %$ on selling price and out of the total sales Rs $85, 000$ was for cash sales.
( Hint Total sales = $4, 00, 000 = 3, 00, 000 \times \frac{100}{75}$ )

Open in App

Solution

Answer :
Dr Debtor's Account Cr
Date Particulars JF Amt.(Rs) Date Particulars JF Amt. (Rs)
To Balance b/d (Balancing figure) $54, 000$ By Discount Allowed $2, 500$
To Bills Receivable (Dishonoured) $3, 500$ By Bills Receivable (Received) $75, 000$
To Sales Credit $3, 15, 000$ By Cash A/c $2, 20, 000$
By Balance c/d $75, 000$
$3, 72, 500$ $3, 72, 500$

Dr Creditor's Account Cr
Date Particulars JF Amt.(Rs) Date Particulars JF Amt.(Rs)
To Discount Received $1, 500$ By Balance b/d $50, 000$
To Cash A/c $1, 35, 000$ By Purchases (credit) $2, 95, 000$
To Bills Receivable (Acceptance) $30, 000$
To Balance c/d (Balancing figure) $1, 78, 500$
$3, 45, 000$ $3, 45, 000$

Note : It is assumed that all purchase is credit purchase.
Working Note
Computation of Credit Sales
Sales = Cost of goods sold + Gross profit
Cost of goods sold = Opening stock + Purchases - Closing stock
= $30, 000 + 2, 95, 000 - 25, 000 = 3, 00, 000$
When the cost of goods sold is Rs $3, 00, 000$ .
Sales will be (Total) = $3, 00, 000$ + 25\%$ Gross Profit
Gross profit is calculated on sales hence to calculate it on cost of goods sold. The formula will be
= $[C o s t o f g o o d s \times \frac{25}{100 - 25}]$
= $[3, 00, 000 \times \frac{25}{75}]$
Total Sales = $3, 00, 000 + 1, 00, 000 = R s .4, 00, 000$
As we know that cash sales is Rs $85, 000$
So credit sales will be = $4, 00, 000 - 85, 000 = R s 3, 15, 000$

Suggest Corrections

Similar questions

From the following information ascertain the opening balance of sundry debtors and closing balance of sundry creditors:

$\begin{matrix} Rs. Opening stock & 30, 000 Closing stock & 25, 000 Opening creditors & 50, 000 Closing debtors & 75, 000 Discount allowed by creditors & 1, 500 Discount allowed by customers & 2, 500 Cash paid to creditors & 1, 35, 000 Bills payable accepted during the period & 30, 000 Bills receivable received during the period & 75, 000 Cash received from customers & 2, 20, 000 Bills receivable dishonoured & 3, 500 Purchases & 2, 95, 000 \end{matrix}$

The rate of gross profit is 25% on selling price and out of the total sales Rs.85,000 was for cash sales.

Q. Question : Prepare the suitable accounts and find out the missing figure if any

	(Rs)
Opening balance of debtors	$14, 00, 000$
Opening balance of bills receivable	$7, 00, 000$
Closing balance of bills receivable	$3, 50, 000$
Cheque dishonoured	$27, 000$
Cash received from debtors	$10, 75, 000$
Cheque received and deposited in the bank	$8, 25, 000$
Discount allowed	$37, 500$
Irrecoverable amount	$17, 500$
Returns Inwards	$28, 000$
Bills receivable received from customers	$1, 05, 000$
Bills receivable matured	$2, 80, 000$
Bills discounted	$65, 000$
Bills endorsed to creditors	$70, 000$

Q. Question : From the details given below, find out the credit sales and total sales.

	(Rs)
Opening Debtors	$45, 000$
Closing Debtors	$56, 000$
Discount allowed	$2, 500$
Sales returns	$8, 500$
Irrecoverable Amount	$4, 000$
Bills receivables received	$12, 000$
Bills receivable dishonoured	$3, 000$
Cheque dishonoured	$7, 700$
Cash Sales	$80, 000$
Cash received from Debtors	$2, 30, 000$
Cheque received from Debtors	$25, 000$

Prepare the suitable accounts and find out the missing figure if any.

	Rs
Opening balance of debtors	14,00,000
Opening balance of bills receivable	7,00,000
Closing balance of bills receivable	3,50,000
Cheque dishonoured	27,000
Cash received from debtors	10,75,000
Cheque received and deposited in the bank	8,25,000
Discount allowed	37,500
Irrecoverable amount	17,500
Returns inwards	28,000
Bills receivable received from customers	1,05,000
Bills receivable matured	2,80,000
Bills discounted	65,000
Bills endorsed to creditors	70,000

Q. Opening balance of debtors is Rs.

35, 000

cash received from Debtors is Rs.

30, 000

cash sales Rs.

20, 000

which is

20 %

of total sales. B/R Received for Rs.

40, 000

and discount allowed is

1 %

of cash collection. Find the net debtor balance.

Join BYJU'S Learning Program

	(Rs)
Opening stock	$30, 000$
Closing stock	$25, 000$
Opening creditors	$50, 000$
Closing debtors	$75, 000$
Discount allowed by creditors	$1, 500$
Discount allowed to customers	$2, 500$
Cash paid to creditors	$1, 35, 000$
Bills payable accepted during the period	$30, 000$
Bills receivable received during the period	$75, 000$
Cash received from customers	$2, 20, 000$
Bill receivable dishonored	$3, 500$
Purchases	$2, 95, 000$

Date	Particulars	JF	Amt.(Rs)	Date	Particulars	JF	Amt. (Rs)
	To Balance b/d (Balancing figure)		$54, 000$		By Discount Allowed		$2, 500$
	To Bills Receivable (Dishonoured)		$3, 500$		By Bills Receivable (Received)		$75, 000$
	To Sales Credit		$3, 15, 000$		By Cash A/c		$2, 20, 000$
					By Balance c/d		$75, 000$
			$3, 72, 500$				$3, 72, 500$