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Calculate opening debtor and closing debtor from the following: debtor turnover ratio 4 times, cost of goods sold rupees 640000 ,gross profit ratio 20%, closing debtors were rupees 20000 more than the debtor at the beginning , cash sale being 33 and 1 by 3% of credit sale.?
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Calculate opening debtor and closing debtor from the following: debtor...
Calculation of Opening and Closing Debtors

Given:
- Debtor turnover ratio = 4 times
- Cost of goods sold = Rs. 640000
- Gross profit ratio = 20%
- Closing debtors were Rs. 20000 more than the debtor at the beginning
- Cash sale = 33 and 1/3% of credit sale

Step 1: Calculate Credit Sales
- Credit sales = Cost of goods sold / (1 - Gross profit ratio)
- Credit sales = 640000 / (1 - 0.2)
- Credit sales = Rs. 800000

Step 2: Calculate Cash Sales
- Cash sales = 33 and 1/3% of credit sales
- Cash sales = (33 and 1/3 / 100) * 800000
- Cash sales = Rs. 266666.67

Step 3: Calculate Total Sales
- Total sales = Credit sales + Cash sales
- Total sales = 800000 + 266666.67
- Total sales = Rs. 1066666.67

Step 4: Calculate Debtor at the Beginning
- Debtor turnover ratio = Credit sales / Average debtors
- Average debtors = Credit sales / Debtor turnover ratio
- Average debtors = 800000 / 4
- Average debtors = Rs. 200000
- Closing debtors = Debtor at the beginning + Credit sales - Cash sales
- Closing debtors = Debtor at the beginning + 800000 - 266666.67
- Closing debtors = Debtor at the beginning + 533333.33
- Closing debtors = Debtor at the beginning + 20000 + 513333.33
- Debtor at the beginning = (Closing debtors - 20000) - Average debtors
- Debtor at the beginning = 513333.33 - 20000 - 200000
- Debtor at the beginning = Rs. 293333.33

Step 5: Calculate Closing Debtors
- Closing debtors = Debtor at the beginning + Credit sales - Cash sales + Rs. 20000
- Closing debtors = 293333.33 + 800000 - 266666.67 + 20000
- Closing debtors = Rs. 900666.67

Therefore, the opening debtor is Rs. 293333.33 and the closing debtor is Rs. 900666.67.
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Calculate opening debtor and closing debtor from the following: debtor turnover ratio 4 times, cost of goods sold rupees 640000 ,gross profit ratio 20%, closing debtors were rupees 20000 more than the debtor at the beginning , cash sale being 33 and 1 by 3% of credit sale.?
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Calculate opening debtor and closing debtor from the following: debtor turnover ratio 4 times, cost of goods sold rupees 640000 ,gross profit ratio 20%, closing debtors were rupees 20000 more than the debtor at the beginning , cash sale being 33 and 1 by 3% of credit sale.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Calculate opening debtor and closing debtor from the following: debtor turnover ratio 4 times, cost of goods sold rupees 640000 ,gross profit ratio 20%, closing debtors were rupees 20000 more than the debtor at the beginning , cash sale being 33 and 1 by 3% of credit sale.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate opening debtor and closing debtor from the following: debtor turnover ratio 4 times, cost of goods sold rupees 640000 ,gross profit ratio 20%, closing debtors were rupees 20000 more than the debtor at the beginning , cash sale being 33 and 1 by 3% of credit sale.?.
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