PRC-1 · Chapter 3 · Question 40 of 100
The receivables ledger of 'Falcon Furnishings' shows an opening debit balance of Rs. 75,000. During the period: Credit sales Rs. 200,000; Cash received from credit customers Rs. 150,000; Discounts allowed Rs. 4,000; Bad debts written off Rs. 6,000. What is the closing balance of the receivables ledger?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 115,000 Debit
Explanation
Closing Receivables = Opening Asset (75,000) + Credit sales (200,000) - Receipts (150,000) - Discounts allowed (4,000) - Bad debts (6,000) = Rs. 115,000 Debit.
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