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Opening and closing balances of debtors are 30,000 & 40,000 respectively. Cash collected from debtors 2,40,000. Discount allowed is 15,000 for prompt payment. Bad debts Rs.10,000. The total goods sold on credit are______
  • a)
    2,55,000
  • b)
    2,45,000
  • c)
    2,95,000
  • d)
    2,75,000
Correct answer is option 'D'. Can you explain this answer?
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Calculation of Total Goods sold on Credit:

Opening Balance of Debtors = Rs. 30,000
Closing Balance of Debtors = Rs. 40,000

Cash Collected from Debtors = Rs. 2,40,000
Discount Allowed = Rs. 15,000
Bad Debts = Rs. 10,000

Formula:

Total Sales on Credit = Opening Balance of Debtors + Credit Sales - Closing Balance of Debtors

Calculation:

Total Sales on Credit = Rs. 30,000 + Credit Sales - Rs. 40,000
Credit Sales = Rs. 40,000 - Rs. 30,000 + Credit Sales
Credit Sales = Rs. 10,000 + Credit Sales

Total Cash Collected = Cash Collected from Debtors - Discount Allowed - Bad Debts
Total Cash Collected = Rs. 2,40,000 - Rs. 15,000 - Rs. 10,000
Total Cash Collected = Rs. 2,15,000

Total Sales = Total Cash Collected + Total Sales on Credit
Total Sales = Rs. 2,15,000 + Rs. 10,000
Total Sales = Rs. 2,25,000

Therefore, the total goods sold on credit are Rs. 2,25,000. Option (d) is the correct answer.
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Opening and closing balances of debtors are 30,000 & 40,000 respectively. Cash collected from debtors 2,40,000. Discount allowed is 15,000 for prompt payment. Bad debts Rs.10,000. The total goods sold on credit are______a)2,55,000b)2,45,000c)2,95,000d)2,75,000Correct answer is option 'D'. Can you explain this answer?
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Opening and closing balances of debtors are 30,000 & 40,000 respectively. Cash collected from debtors 2,40,000. Discount allowed is 15,000 for prompt payment. Bad debts Rs.10,000. The total goods sold on credit are______a)2,55,000b)2,45,000c)2,95,000d)2,75,000Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Opening and closing balances of debtors are 30,000 & 40,000 respectively. Cash collected from debtors 2,40,000. Discount allowed is 15,000 for prompt payment. Bad debts Rs.10,000. The total goods sold on credit are______a)2,55,000b)2,45,000c)2,95,000d)2,75,000Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Opening and closing balances of debtors are 30,000 & 40,000 respectively. Cash collected from debtors 2,40,000. Discount allowed is 15,000 for prompt payment. Bad debts Rs.10,000. The total goods sold on credit are______a)2,55,000b)2,45,000c)2,95,000d)2,75,000Correct answer is option 'D'. Can you explain this answer?.
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