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A long dispute with one of the creditors was settled by paying 9,050 in cash. In anticipation 6,000 have already been included in sundry creditors for this purpose. ( retirement)?
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A long dispute with one of the creditors was settled by paying 9,050 i...
Explanation:
Background:
A dispute with one of the creditors has been ongoing, and a settlement has been reached to retire the debt. The settlement requires payment of cash.
Payment Made:
The amount paid to settle the dispute is 9,050 in cash.
Anticipated Payment:
An anticipated payment of 6,000 was included in the sundry creditors account to cover the cost of retiring this debt.
Reason for including in sundry creditors:
Sundry creditors represent the amounts owed to suppliers and other parties for goods or services received but not yet paid for. In this case, the anticipated payment of 6,000 was included in sundry creditors because it represented a debt owed to a creditor that had not yet been paid.
Impact on Financial Statements:
The settlement of the dispute and payment of cash will impact the company's financial statements. The following accounts will be affected:
- Cash account will decrease by 9,050
- Sundry creditors will decrease by 6,000
- The difference of 3,050 will be reported as an expense in the income statement.
Conclusion:
The settlement of the long dispute with one of the creditors required a cash payment of 9,050. An anticipated payment of 6,000 was included in sundry creditors to cover the cost of retiring the debt. This will impact the company's financial statements by decreasing cash and sundry creditors and reporting an expense in the income statement.
Background:
A dispute with one of the creditors has been ongoing, and a settlement has been reached to retire the debt. The settlement requires payment of cash.
Payment Made:
The amount paid to settle the dispute is 9,050 in cash.
Anticipated Payment:
An anticipated payment of 6,000 was included in the sundry creditors account to cover the cost of retiring this debt.
Reason for including in sundry creditors:
Sundry creditors represent the amounts owed to suppliers and other parties for goods or services received but not yet paid for. In this case, the anticipated payment of 6,000 was included in sundry creditors because it represented a debt owed to a creditor that had not yet been paid.
Impact on Financial Statements:
The settlement of the dispute and payment of cash will impact the company's financial statements. The following accounts will be affected:
- Cash account will decrease by 9,050
- Sundry creditors will decrease by 6,000
- The difference of 3,050 will be reported as an expense in the income statement.
Conclusion:
The settlement of the long dispute with one of the creditors required a cash payment of 9,050. An anticipated payment of 6,000 was included in sundry creditors to cover the cost of retiring the debt. This will impact the company's financial statements by decreasing cash and sundry creditors and reporting an expense in the income statement.
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A long dispute with one of the creditors was settled by paying 9,050 in cash. In anticipation 6,000 have already been included in sundry creditors for this purpose. ( retirement)?
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A long dispute with one of the creditors was settled by paying 9,050 in cash. In anticipation 6,000 have already been included in sundry creditors for this purpose. ( retirement)? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about A long dispute with one of the creditors was settled by paying 9,050 in cash. In anticipation 6,000 have already been included in sundry creditors for this purpose. ( retirement)? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A long dispute with one of the creditors was settled by paying 9,050 in cash. In anticipation 6,000 have already been included in sundry creditors for this purpose. ( retirement)?.
A long dispute with one of the creditors was settled by paying 9,050 in cash. In anticipation 6,000 have already been included in sundry creditors for this purpose. ( retirement)? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about A long dispute with one of the creditors was settled by paying 9,050 in cash. In anticipation 6,000 have already been included in sundry creditors for this purpose. ( retirement)? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A long dispute with one of the creditors was settled by paying 9,050 in cash. In anticipation 6,000 have already been included in sundry creditors for this purpose. ( retirement)?.
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