Opening Debtors, Collection from Debtors and Discount Allowed were `3,15,000. `18,30,000 and `35,000 respectively. If the closing debtors were 20% of credit sales of the period then closing debtors and credit sales would be

Question

Quizplus · Accepted Answer

Explanation: To find the closing debtors and credit sales, we use the information given. Opening Debtors + Credit Sales - Collections - Discount Allowed = Closing Debtors. Let's denote Credit Sales as "X". So, 3,15,000 + X - 18,30,000 - 35,000 = 20% of X. Simplifying, we get X = 19,37,500. Therefore, Closing Debtors = 20% of 19,37,500 = 3,87,500.

Opening Debtors, Collection from Debtors and Discount Allowed Were `3,15,000