Mr.Minaal has a grocery shop. He purchased vegetables from a farmer in Haryana for a value of Rs 40,000 on 21st March 2018. Payment for the same has not been done until 31st March 2018. In the balance sheet of Mr.Minaal, the farmer will be shown as:

Asset

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Debtor

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Lender

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Creditor

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Solution

The correct option is D
Creditor

Creditors are persons and/or other entities who have to be paid by an enterprise an amount for providing the enterprise goods and services on credit. The total amount standing to the favour of such persons and/or entities on the closing date is shown as creditors .

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Similar questions

Mr. X issued cheques worth 15,000 in March 2018 out of which cheques worth 10,000 only were presented for payment by 31st March, 2018. While reconciliation bank and cash book balance as on 31st March, 2018, what amount should be added to balance as per cash book to arrive at balance as per pass book?

Q. Glaxo Club's Balance Sheet as at 1st April, 2018 was as under:

Liabilities	(₹)	Assets	(₹)
Capital Fund	2,00,000	Sports Equipments	50,000
Tournament Fund	60,000	Grounds	1,20,000
Subscriptions in Advance	6,000	Billiards Tables	60,000
Salaries Unpaid	11,000	Subscriptions Outstanding	8,000
		Cash and Bank Balances	39,000


	2,77,000		2,77,000

Receipts and Payments Account for the year ended 31st March, 2019 was:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019
Dr.			Cr.
Receipts	(₹)	Payments	(₹)
To Opening Balance	39,000	By Wages and Salaries	60,000
To Subscriptions	1,81,000	By Upkeep of Grounds	10,000
To Sale of Old Materials	1,500	By Stationery	15,000
To Sale of Sports Equipment	6,000	By Audit Fee	2,000
(Book value ₹ 10,000)		By Expenses on Tournament	65,000
To Entrance Fees	2,000	By Sports Equipments	20,000
To Life Membership Fees	50,000	By 5% Investments	40,000
To Donations for Tournament	20,000	(On 1st October, 2018)
		By Cash and Bank Balances	87,500
	2,99,500		2,99,500

Subscriptions still to be received are ₹ 5,500 but subscriptions already received include ₹ 4,000 for next year. Salaries still unpaid are ₹ 6,000. Sports Equipments are now valued at ₹ 45,000. Prepare Income and Expenditure Account and the Balance Sheet, after charging 10% depreciation on Billiards Tables.

Super Bazar purchases goods for Rs.10,000 on credit for a month from Fast Food Products on March 25, 2018. If the balance sheet of Super Bazaar is prepared as at March 31, 2018, Fast Food Products will be shown as:

Q. Receipts and Payments Account of Shankar Sports Club is given below, for the year ended 31st March, 2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.				Cr.
Receipts	₹	Payments	₹
To Cash in Hand (Opening) To Entrance Fee To Donation for Building To Locker Rent To Life Membership Fee To Profit from Entertainment To Subscription	2,600 3,200 23,000 1,200 7,000 3,000 40,000	By Rent By Wages By Billiard Table By Furniture By Interest By Postage By Salary By Cash In Hand (closing)	18,000 7,000 14,000 10,000 2,000 1,000 24,000 4,000



	80,000		80,000

Prepare Income and Expenditure Account and Balance Sheet with the help of following information:
Subscription outstanding on 31st March, 2017 is ₹ 1,200 and ₹ 2,300 on 31st March, 2018; opening stock of postage stamps is ₹ 300 and closing stock is ₹ 200; Rent ₹ 1,500 related to the year ended 31st March, 2017 and ₹ 1,500 is still unpaid. On 1st April, 2017 the club owned furniture ₹ 15,000, Furniture valued at ₹ 22,500 on 31st March, 2018. The club has a loan of ₹ 20,000(@ 10% p.a.) which was taken , in year ended 31st March,2017.

Q. From the following Receipts and Payments Account of City Club and from the information supplied , prepare Income and Expenditure Account for the year ended 31st March , 2018 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March ,2018
Dr.				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Balance b/d		7,000	By Salaries	28,000
To Subscriptions:			By General Expenses	6,000
2016-17	5,000		By Electricity Charges	4,000
2017-18	20,000		By Books	10,000
2018-19	4,000	29,000	By Newspapers	8,000
To Rent		14,000	By Balance c/d	4,000
(Received from the Use of Hall)
To Profit from Entertainment		8,000
To Sale of Old Newspapers		2,000

		60,000		60,000

(a) The club has 50 members each paying an annual subscription of ₹ 500. Subscriptions Outstanding on 31st March,2017 were ₹ 6,000.
(b) On 31st March, 2018, Salries Outstanding amounted to ₹ 2,000 . Salaries paid in the year ended 31st March, 2018 included ₹ 6,000 for the year ended 31st March , 2017.
(c) On 1st April , 2017, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

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Mr.Minaal has a grocery shop. He purchased vegetables from a farmer in Haryana for a value of Rs 40,000 on 21st March 2018. Payment for the same has not been done until 31st March 2018. In the balance sheet of Mr.Minaal, the farmer will be shown as:

The correct option is D Creditor Creditors are persons and/or other entities who have to be paid by an enterprise an amount for providing the enterprise goods and services on credit. The total amount standing to the favour of such persons and/or entities on the closing date is shown as creditors .

The correct option is D
Creditor

Creditors are persons and/or other entities who have to be paid by an enterprise an amount for providing the enterprise goods and services on credit. The total amount standing to the favour of such persons and/or entities on the closing date is shown as creditors .