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?

Rs 70,000

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Rs 20,000

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Rs 60,000

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Rs 50,000

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Solution

The correct option is C
Rs 60,000

Sum of Rs 20,000 borrowed by Mr. Ram shall be reflected as loan and advances given by Ravi in his books because debtors are only related to credit sales in any concern.

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Journalise the following transactions in the books of Miss. Nivedita.

2010 May	1	Commenced business with Cash Rs 2,10,000.
	4	Purchased goods for cash Rs 60,000.
	5	Sold good for cash Rs 70,000.
	9	Deposited into Bank of India Rs 1,00,000.
	13	Paid for stationery Rs 10,000.
	17	Purchased Computer with printer Rs 40,000.
	21	Purchased goods from Ravi for Rs 50,000 on credit.
	25	Paid for Office Rent Rs 2,000.
	26	Received Commission Rs 1,000.
	30	Withdrew from bank for office use Rs 50,000.
	31	Paid for salaries Rs 4,500.

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The correct option is C Rs 60,000 Sum of Rs 20,000 borrowed by Mr. Ram shall be reflected as loan and advances given by Ravi in his books because debtors are only related to credit sales in any concern.

The correct option is C
Rs 60,000

Sum of Rs 20,000 borrowed by Mr. Ram shall be reflected as loan and advances given by Ravi in his books because debtors are only related to credit sales in any concern.