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Business Studies

Concept of Business

Sundry debtor...

Question

Sundry debtors are liquid assets.

A

True

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B

False

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Solution

The correct option is A True
Liquid assets are those assets which are readily converted into cash and will include cash balance, bills receivable, Sundry debtors and short term investments. But it does not include prepaid expenses and inventories.

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Q. Under which heads the following items are classified or shown on the Assets part of the Balance Sheet of a copany: (i) Loose Tools; (ii) Bills Receivable; (iii) Sundry Debtors: and (iv) Advances Recoverable in Cash?

Q. On the date of retirement of a partner Furniture Sundry debtors and provisions bad debtors stand in the books of A/c at Rs.50,000,Rs 45000, and Rs 4500 respectively. The partner decided to revalue assets as under furniture to be reduced to 85 % ,provision for bad debts to be brought to 20% of sundry debtors. The entry for revaluation of furniture in trade will be _______________.

Q. Mr. Asif Ali, a retail trader, who keeps Incomplete Records gives you the following information for the year 2018-19:

SUMMARY OF CASH TRANSACTIONS
	(₹)		(₹)
Received from Debtors	38,000	Bank Overdraft on 1-4-2018	2,500
Cash Sales	26,500	Paid to Creditors	31,200
Miscellaneous Income	300	Carriage inwards	800
		Salaries	12,400
		Advertisement	700
		Cash Purchases	16,000
		Balance at Bank on 31-3-2019	1,200

	64,800		64,800

The Assets and Liabilities were as follows:

	31st March 2018	31st March 2019
	₹	₹
Stock	15,000	12,000
Fixed Assets	25,000	25,000
Sundry Debtors	12,000	?
Sundry Creditors	8,600	?

Other Informations:
(1) Credit Sales during the year were ₹ 35,100.
(2) Sales returns ₹ 800.
(3) Credit Purchases during the year were ₹ 30,000.
(4) Discount allowed to Debtors ₹ 300.
(5) Discount received from Creditors ₹ 130.

Adjustments:-
(1) Make a provision for doubtful debts @ 5% on Debtors.
(2) Also make a provision for discount @ 2% on Debtors.
Prepare his Trading, P & L A/c and a Balance Sheet as at 31st March, 2019.

Q. Collection of sundry debtors would _______________.

Q. Mr. Asif Ali, a retail trader, who keeps Incomplete Records gives you the following information for the year 2011-12:

Summary of Cash Transactions
	(₹)		(₹)
Received from Debtors	38,000	Bank Overdraft on 1-4-2011	2,500
Cash Sales	26,500	Paid to Creditors	31,200
Miscellaneous Income	300	Carriage inwards	800
		Salaries	12,400
		Advertisement	700
		Cash Purchases	16,000
		Balance at Bank on 31-3-2012	1,200

	64,800		64,800

The Assets and Liabilities were as follows:

	31st March 2011 ₹	31st March 2012 ₹
Stock	15,000	12,000
Fixed Assets	25,000	25,000
Sundry Debtors	12,000	?
	8,600	?

Other Informations:
(1) Credit Sales during the year were ₹ 35,100.
(2) Sales returns ₹ 800.
(3) Credit Purchases during the year were ₹ 30,000.
(4) Discount allowed to Debtors ₹ 300.
(5) Discount received from Creditors ₹ 130.

Adjustments:-
(1) Make a provision for doubtful debts @ 5% on Debtors.
(2) Also make a provision for discount @ 2% on Debtors.
Prepare his Trading, P & L A/c and a Balance Sheet as at 31st March, 2012.

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