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Question

A company has opening balance of debtors of Rs.3 lakh. If the doubtful provision is 5% and discount is 2%, what is the net balance of debtors at the end of the year?

A 2,79,000 Correct Answer Incorrect Answer
B 2,79,300 Correct Answer Incorrect Answer
C 2,85,000 Correct Answer Incorrect Answer
D 2,85,180 Correct Answer Incorrect Answer
E 2,94,000 Correct Answer Incorrect Answer

Solution

Net Debtors = (debtors – provision for bad debts) – discount                         = (300000 – 5%) – 2% of balance                         = 285,000 – 2% of 285,000                         = 285,000 – 5,700                         = 2,79,300  

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