OPENING DEBTORS ~ 35,000 Cash Received fromDebtors is ~ 30,000 Cash sales is~ 20,000 which is 20% of totalsales. B/R Received for ~ 40,000and discount allowed is 1 % of cashcollection.Find the closing debtors. *
1 point
(a) ~ 15,300
(b) ~ 44,700
. (c) ~ 64,700
(d) ~ 35,700
To find the closing debtors, we need to calculate the total credit sales and deduct the cash received from debtors.
Given information:
Cash received from debtors = ~ 30,000
Cash sales = ~ 20,000 (20% of total sales)
B/R received = ~ 40,000
Discount allowed = 1% of cash collection
First, let's calculate the total credit sales:
Cash sales = ~ 20,000 (20% of total sales)
We can calculate the total sales using the formula:
Total sales = Cash sales / (20%)
Total sales = ~ 20,000 / (20/100) = ~ 100,000
Now, let's calculate the total amount received from debtors:
Cash received from debtors = ~ 30,000
B/R received = ~ 40,000
Discount allowed = 1% of cash collection
Total cash collection = Cash received from debtors + B/R received = ~ 30,000 + ~ 40,000 = ~ 70,000
Discount allowed = 1% of cash collection = 1/100 * ~ 70,000 = ~ 700
Actual cash collection = Total cash collection - Discount allowed = ~ 70,000 - ~ 700 = ~ 69,300
Finally, we can calculate the closing debtors:
Closing debtors = Total credit sales - Actual cash collection = ~ 100,000 - ~ 69,300 = ~ 30,700
Therefore, the closing debtors are approximately ~ 30,700, so the correct option is (d) ~ 35,700.