Question
A company has opening balance of debtors of Rs.3 lakh.
If the doubtful provision is 5% and discount is 2%, what is the net balance of debtors at the end of the year?Solution
Net Debtors = (debtors – provision for bad debts) – discount                        = (300000 – 5%) – 2% of balance                        = 285,000 – 2% of 285,000                        = 285,000 – 5,700                        = 2,79,300 Â
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