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Opening debtors were Rs 40,000, cash received from debtors Rs 1,00,000, discount allowed Rs 5,000, sales returns Rs 2,000 and closing debtors Rs 60,000. Credit sales are:
ARs 1,07,000
BRs 1,27,000
CRs 1,47,000
DRs 1,67,000
Answer & Solution
Correct answer: B. Rs 1,27,000
1. Credit sales are the balancing figure of the total debtors account.
2. The credit side totals the amounts that reduced debtors: cash received Rs 1,00,000, discount allowed Rs 5,000, sales returns Rs 2,000 and the closing balance Rs 60,000, which comes to Rs 1,67,000.
3. The debit side already carries the opening balance of Rs 40,000.
4. Credit sales must therefore be Rs 1,67,000 minus Rs 40,000, which is Rs 1,27,000.
5. Option D is the account total rather than the balancing figure, a common misread.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 1 "Accounts from Incomplete Records", Illustration 10_
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