wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Mr. Ram has a business of selling shoes. He bought goods worth Rs 50,000 on credit from Mr. Ajay. Also, he borrowed a sum of Rs 1,00,000 from his friend Mr.Shyam. What would be the amount of creditors which wil be recorded in his books?


A

Rs 1,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
B

Rs 50,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C

Rs 1,50,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

Rs 2,00,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B

Rs 50,000


A lender lends money to a person or institution but he is not a creditor. A creditor is a person to whom money is owed by the person or institution for the goods acquired for resale. Hence only Rs 50,000 shall be recognised as creditors.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Basic Terms of Accounting
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon