Illustrations · Illustration 4
Q.
From the following information supplied by Ms. Sudha, calculate the amount of 'Net Sales'.
| Particulars | Amount (₹) |
|---|---|
| Debtors on April 01, 2016 | 65,000 |
| Debtors on March 31, 2017 | 50,000 |
| Opening balance of bills receivable as on April 01, 2016 | 23,000 |
| Closing balance of bills receivable as on March 31, 2017 | 29,000 |
| Cash received from debtors | 3,02,000 |
| Discount allowed | 8,000 |
| Cash received against bills receivable | 21,000 |
| Bad debts | 14,000 |
| Bill receivables (dishonoured) | 20,000 |
| Cash sales | 2,25,000 |
| Sales return | 17,000 |
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✓ Free question
Bills received ₹47,000 (from total bills receivable account) feed the total debtors account, whose balancing figure gives credit sales ₹3,53,000; net sales = ₹2,25,000 + ₹3,53,000 − ₹17,000 = ₹5,61,000.
Total Bills Receivable Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| Opening balance | 23,000 | Cash (bills honoured) | 21,000 | ||||
| Debtors (bills receivable received) (balancing figure) | 47,000 | Debtors (bills receivable dishonoured) | 20,000 | ||||
| Closing balance | 29,000 | ||||||
| Total | 70,000 | Total | 70,000 |
Total Debtors Account
| Date | Particulars | J.F. | Amount (₹) | Date | Particulars | J.F. | Amount (₹) |
|---|---|---|---|---|---|---|---|
| Opening balance | 65,000 | Cash received | 3,02,000 | ||||
| Bills receivable (dishonoured) | 20,000 | Discount allowed | 8,000 | ||||
| Sales (balancing figure) | 3,53,000 | Sales return | 17,000 | ||||
| Bad debts | 14,000 | ||||||
| Bills receivable (transferred from bills receivable account) | 47,000 | ||||||
| Closing balance | 50,000 | ||||||
| Total | 4,38,000 | Total | 4,38,000 |
Working Note — Net Sales
Net Sales = Cash Sales + Credit Sales − Sales return = ₹2,25,000 + ₹3,53,000 − ₹17,000 = ₹5,61,000.
✓Final answer
Net Sales: ₹5,61,000.
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