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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