X Limited is in the business of trading. It is to receive ₹7,000 from Vinod and to pay ₹8,000 to Vinod. Similarly, it is to pay ₹8,000 to Sudhir and to receive ₹9,000 from Sudhir. Except above but after all the adjustmen
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
X Limited is in the business of trading. It is to receive ₹7,000 from Vinod and to pay ₹8,000 to Vinod. Similarly, it is to pay ₹8,000 to Sudhir and to receive ₹9,000 from Sudhir. Except above but after all the adjustment, the books of X Limited show the debtors balance at ₹72,000 (Dr.) and creditors balance at ₹39,000 (Cr.). The correct value of debtors and creditors to be shown in balance sheet would be —
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) Debtors (₹88,000), Creditors (₹55,000). Show the two parties’ receivables and payables gross: debtors 72,000 + 7,000 + 9,000 = 88,000; creditors 39,000 + 8,000 + 8,000 = 55,000.
Topics: Fundamentals of Accounting and Auditing
Related Questions in this Topic
- 'Disclaimer of Opinion' means —
- Which of the following is necessarily to be included in an auditor's report —
- Detection and prevention of fraud is the _________ objective of auditing activity.
- The form and basic contents of statutory audit report are —
- For auditors, which of the following document generally contains the scope of work —