Opening debtors are Rs. 20,000, cash received from debtors is Rs. 70,000, returns inward are Rs. 3,000, bad debts are Rs. 2,000, and closing debtors are Rs. 25,000. What are the credit sales?
Correct answer: C. Rs. 80,000
- A. Rs. 70,000
- B. Rs. 75,000
- C. Rs. 80,000
- D. Rs. 85,000
Explanation
Credit sales are found by adding closing debtors, cash received, returns inward, and bad debts, then subtracting opening debtors. The calculation is Rs. 25,000 + Rs. 70,000 + Rs. 3,000 + Rs. 2,000 - Rs. 20,000 = Rs. 80,000.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Incomplete Records
Incomplete records require profit and financial position to be reconstructed when a complete double-entry system is unavailable. Methods include statements of affairs, capital comparisons, control accounts, cash summaries and margin calculations to find missing sales, purchases, expenses, assets, liabilities and drawings, while distinguishing business profit from changes in capital.
Practise Incomplete Records
34 free Incomplete Records MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Incomplete Records questions
A trader’s opening capital is Rs. 400,000, closing capital is Rs. 470,000, drawings are Rs. 60,000, and additional capital introduced is Rs. 20,000. What is the profit?
Under the capital comparison method, which formula determines profit when drawings and additional capital are known?
A business has assets of Rs. 850,000 and liabilities of Rs. 275,000. What is its capital according to the statement of affairs?
Opening creditors are Rs. 18,000, cash paid to suppliers is Rs. 60,000, returns outward are Rs. 4,000, and closing creditors are Rs. 24,000. What are the credit purchases?
When a complete cash book is available but other records are incomplete, which item can be established directly from the cash book?
A trader’s capital increases from Rs. 300,000 to Rs. 360,000 during the year. The trader withdraws Rs. 50,000 and introduces additional capital of Rs. 20,000. What is the result for the year?