In an organisation, cash sales is 25% and credit sales is 75%. Sales for October, 2013 is ₹12,00,000, November, 2013 ₹14,00,000, December, 2013 ₹16,00,000, January, 2014 ₹6,00,000 and February, 2014 ₹8,00,000. 60% of cre

CS Executive · Cost and Management Accounting · PYQS · December 2014
In an organisation, cash sales is 25% and credit sales is 75%. Sales for October, 2013 is ₹12,00,000, November, 2013 ₹14,00,000, December, 2013 ₹16,00,000, January, 2014 ₹6,00,000 and February, 2014 ₹8,00,000. 60% of credit sales are collected in the next month after sales, 30% in the second month and 10% in the third month. No bad debts are anticipated. The cash collected in the month of February, 2014 from debtors is —
(A) ₹15,00,000
(B) ₹9,80,000
(C) ₹7,35,000
(D) ₹80,000.

Answer & Explanation:

Correct Answer: Option (C)

Correct answer: (C) ₹7,35,000. Debtor collections = 6,00,000×75%×60% + 16,00,000×75%×30% + 14,00,000×75%×10% = 7,35,000.

Topics: Budgetary Control

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