Question:
Debtors appearing in the Balance Sheet of a firm were as follows:
On dissolution of firm, bad debts were ₹40,000 and the remaining debtors were realised at 5% discount. How much amount was realised from Debtors?
Debtors appearing in the Balance Sheet of a firm were as follows:
On dissolution of firm, bad debts were ₹40,000 and the remaining debtors were realised at 5% discount. How much amount was realised from Debtors?
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On dissolution, bad debts are first deducted from total debtors, and discount is applied on the balance realised.
Updated On: Feb 16, 2026
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Solution and Explanation
Total Sundry Debtors = ₹4,00,000
Less: Bad Debts = ₹40,000
\[
\text{Remaining Debtors} = 4,00,000 - 40,000 = 3,60,000
\]
Debtors were realised at 5% discount, i.e., 95% of remaining debtors:
\[
\text{Amount Realised} = 3,60,000 \times \frac{95}{100} = ₹3,42,000
\]
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