Question

Sundry debtors before making following adjustment are Rs. $34,300$.
Adjustment:
-Two dishonoured cheque for Rs. $200$ & Rs. $320$, respectively, from customer X and Y has not been entered in cash book. The first one for Rs. $200$ is bade and irrevocable. In case of second cheque for Rs. $320$, it is expected that Y will pay a dividend of Rs. $75$ paisa in the rupee.
-Included in sundry debtors Rs. $5,000$ due from J. Sen whereas sundry creditor included Rs. $2,000$ due to J. Sen.
In balance sheet debtors will appear at.

• A. Rs. $32,540$
• B. Rs. $32,620$
• C. Rs. $29,540$
• D. Rs. $31,540$

Answer 1

Answer: (A)

Rs. $32,540$

Solution to the problem can be represented as:

Sundry Debtors before making adjustments: Rs.34300

Less: Adjustment of Sundry creditors Rs. 2000

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Rs.32300

Add: Cheque dishonored (Rs.200+Rs.320) Rs. 520

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Rs.32820

Less: Bad Debts

1) Dishonored Cheque Rs. 200

2) Bad debts (Rs.320*25%) Rs. 80

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Balance of Sundry Debtors to be shown in Balance Sheet Rs. 32540.