PRC-1 · Chapter 3 · Question 14 of 100
At the start of the month, 'Summit Traders' had a receivables balance of Rs. 50,000 from 'Alpha Co'. During the month, 'Summit' sold goods worth Rs. 30,000 on credit to 'Alpha', received a cheque of Rs. 20,000, and allowed a discount of Rs. 1,000. What is the closing balance of 'Alpha Co'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Rs. 59,000 Debit
Explanation
Opening asset balance is Rs. 50,000 Debit. Credit sales increase it by Rs. 30,000 (Debit). The cheque received (Rs. 20,000) and discount allowed (Rs. 1,000) both decrease it (Credit). Closing balance = 50,000 + 30,000 - 20,000 - 1,000 = Rs. 59,000 Debit.
More Ledgers and Trial Balance MCQs
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