CA CPT Exam  >  CA CPT Questions  >  Trade receivables of M/s Santosh amounts to R... Start Learning for Free
Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will be
  • a)
    Rs. 21,560
  • b)
    Rs. 22,000
  • c)
    Rs. 21,780
  • d)
    Rs. 21,344
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts R...
To calculate the net trade receivables, we need to consider the trade receivables, bad debts, provision for doubtful debts, and provision for discount.

Given data:
Trade receivables = Rs. 25,000
Bad debts = Rs. 3,000
Provision for doubtful debts = 2% of trade receivables
Provision for discount = 1% of trade receivables

Calculations:

1. Provision for doubtful debts:
Provision for doubtful debts = 2% of trade receivables
= 2/100 * Rs. 25,000
= Rs. 500

2. Provision for discount:
Provision for discount = 1% of trade receivables
= 1/100 * Rs. 25,000
= Rs. 250

3. Net trade receivables:
Net trade receivables = Trade receivables - Bad debts - Provision for doubtful debts - Provision for discount
= Rs. 25,000 - Rs. 3,000 - Rs. 500 - Rs. 250
= Rs. 21,250

Therefore, the amount of net trade receivables to be shown in the balance sheet is Rs. 21,250.

The correct answer is option 'D' (Rs. 21,344).
Explore Courses for CA CPT exam
Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer?
Question Description
Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer?.
Solutions for Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT. Download more important topics, notes, lectures and mock test series for CA CPT Exam by signing up for free.
Here you can find the meaning of Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Trade receivables of M/s Santosh amounts to Rs. 25,000 and bad debts Rs.3,000. M/s Santosh provides for Doubtful debts @ 2% and for discount @ 1%. The amount of net trade receivables to be shown in the Balance Sheet will bea)Rs. 21,560b)Rs. 22,000c)Rs. 21,780d)Rs. 21,344Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA CPT tests.
Explore Courses for CA CPT exam

Top Courses for CA CPT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev