Calculating Closing Balance of Debtors

To calculate the closing balance of debtors, we need to consider the following factors:

1. Opening Balance of Debtors: 32600

2. Total Sales: 103000

3. Cash Collected from Debtors: 70000

4. Sales Return: 1500

5. Discount on Purchases: 1200

6. Cash Sales: 43000

7. Bad Debts: 700

Calculation

To calculate the closing balance of debtors, we need to subtract the cash collected from debtors, sales return, discount on purchases, and bad debts from the total sales. The formula to calculate the closing balance of debtors is:

Closing Balance of Debtors = Total Sales - Cash Collected from Debtors - Sales Return - Discount on Purchases - Bad Debts

By putting the values in the formula, we get:

Closing Balance of Debtors = 103000 - 70000 - 1500 - 1200 - 700

Closing Balance of Debtors = 30500

Therefore, the closing balance of debtors is 30500.

Explanation

The opening balance of debtors is the amount owed by customers at the beginning of the accounting period. In this case, it is 32600.

Total sales are the total amount of sales made during the accounting period. In this case, it is 103000.

Cash collected from debtors is the amount of money received from customers who owed money during the accounting period. In this case, it is 70000.

Sales return is the amount of money refunded to customers due to product returns during the accounting period. In this case, it is 1500.

Discount on purchases is the amount of discount given to customers on purchases made during the accounting period. In this case, it is 1200.

Cash sales are the amount of money received from customers who paid in cash during the accounting period. In this case, it is 43000.

Bad debts are the amount of money owed by customers who are not likely to pay during the accounting period. In this case, it is 700.

By subtracting cash collected from debtors, sales return, discount on purchases, and bad debts from the total sales, we get the closing balance of debtors, which is 30500.