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Sundry debtors are appearing at Rs 260000 and provision for doubtful debts at Rs 12000 in balance sheet before dissolution the central debtors will be transferred at which figure in realisation account?
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Sundry debtors are appearing at Rs 260000 and provision for doubtful d...
Understanding Sundry Debtors and Provisions
Sundry debtors represent amounts owed to the business by customers. In this case, the sundry debtors amount to Rs 260,000. However, there is a provision for doubtful debts, which indicates that not all debtors will be collected.
Calculation of Realisation Amount
To determine the figure at which the central debtors will be transferred to the Realisation Account, we need to account for the provision for doubtful debts:
- Sundry Debtors: Rs 260,000
- Provision for Doubtful Debts: Rs 12,000
Net Realisable Value
The net realisable value of the debtors is calculated by subtracting the provision for doubtful debts from the total sundry debtors:
- Net Realisable Value Calculation:
- Rs 260,000 (Sundry Debtors)
- - Rs 12,000 (Provision for Doubtful Debts)
- = Rs 248,000 (Amount to be transferred to Realisation Account)
Conclusion
Thus, in the Realisation Account, the central debtors will be transferred at Rs 248,000. This amount reflects the anticipated cash inflow from the debtors after considering the potential losses from uncollectible debts.
This approach ensures that the balance sheet presents a more accurate picture of the company's financial position during dissolution.
Sundry debtors represent amounts owed to the business by customers. In this case, the sundry debtors amount to Rs 260,000. However, there is a provision for doubtful debts, which indicates that not all debtors will be collected.
Calculation of Realisation Amount
To determine the figure at which the central debtors will be transferred to the Realisation Account, we need to account for the provision for doubtful debts:
- Sundry Debtors: Rs 260,000
- Provision for Doubtful Debts: Rs 12,000
Net Realisable Value
The net realisable value of the debtors is calculated by subtracting the provision for doubtful debts from the total sundry debtors:
- Net Realisable Value Calculation:
- Rs 260,000 (Sundry Debtors)
- - Rs 12,000 (Provision for Doubtful Debts)
- = Rs 248,000 (Amount to be transferred to Realisation Account)
Conclusion
Thus, in the Realisation Account, the central debtors will be transferred at Rs 248,000. This amount reflects the anticipated cash inflow from the debtors after considering the potential losses from uncollectible debts.
This approach ensures that the balance sheet presents a more accurate picture of the company's financial position during dissolution.
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Sundry debtors are appearing at Rs 260000 and provision for doubtful debts at Rs 12000 in balance sheet before dissolution the central debtors will be transferred at which figure in realisation account?
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Sundry debtors are appearing at Rs 260000 and provision for doubtful debts at Rs 12000 in balance sheet before dissolution the central debtors will be transferred at which figure in realisation account? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Sundry debtors are appearing at Rs 260000 and provision for doubtful debts at Rs 12000 in balance sheet before dissolution the central debtors will be transferred at which figure in realisation account? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sundry debtors are appearing at Rs 260000 and provision for doubtful debts at Rs 12000 in balance sheet before dissolution the central debtors will be transferred at which figure in realisation account?.
Sundry debtors are appearing at Rs 260000 and provision for doubtful debts at Rs 12000 in balance sheet before dissolution the central debtors will be transferred at which figure in realisation account? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Sundry debtors are appearing at Rs 260000 and provision for doubtful debts at Rs 12000 in balance sheet before dissolution the central debtors will be transferred at which figure in realisation account? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sundry debtors are appearing at Rs 260000 and provision for doubtful debts at Rs 12000 in balance sheet before dissolution the central debtors will be transferred at which figure in realisation account?.
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