Opening balance of debtors Rs 32600; total sales Rs 103000; cash collected from debtors Rs 70000; sales return Rs 1500; discount on purchase Rs 1200; cash sale Rs 43000; bad debts Rs 700. Find closing debtors?

Question

Answer

Calculation of Closing Debtors

Opening balance of debtors: Rs 32,600

Total sales: Rs 1,03,000

Cash collected from debtors: Rs 70,000

Sales return: Rs 1,500

Discount on purchase: Rs 1,200

Cash sale: Rs 43,000

Bad debts: Rs 700

Calculation of Net Sales

Net sales are the total sales after deducting sales returns and discounts.

Gross Sales: Rs 1,03,000

Sales Return: Rs 1,500

Discount on Purchase: Rs 1,200

Net Sales: Rs (1,03,000-1,500-1,200) = Rs 1,00,300

Calculation of Total Amount Receivable from Debtors

The total amount receivable from debtors can be calculated by subtracting cash collected from debtors and bad debts from the opening balance of debtors and adding net sales.

Opening Balance of Debtors: Rs 32,600

Net Sales: Rs 1,00,300

Cash Collected from Debtors: Rs 70,000

Bad Debts: Rs 700

Total Amount Receivable from Debtors: (32,600 + 1,00,300 - 70,000 - 700) = Rs 63,200

Calculation of Closing Debtors

Closing debtors can be calculated by subtracting cash collected from debtors and bad debts from the total amount receivable from debtors.

Total Amount Receivable from Debtors: Rs 63,200

Cash Collected from Debtors: Rs 70,000

Bad Debts: Rs 700

Closing Debtors: (63,200 - 70,000 - 700) = Rs -1,500

As the closing debtors are negative, it means that the company has received more cash from debtors than the amount it was supposed to receive. This could be due to overpayments by some debtors.

Answer

106400

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