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A Ltd. agreed to collect the debts and pay the creditors on behalf of Senthil from whom the company had

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A Ltd. agreed to collect the debts and pay the creditors on behalf of Senthil from whom the company had acquired a running business. The firm’s debtors and creditors totaled ₹1,50,000 and ₹50,000 respectively. The debtors realized ₹1,48,300 only and the creditors were paid ₹42,000 in full settlement. The company is entitled to a commission of 2.5% on amounts realized and 1% on amounts paid. Prepare Senthil’s Suspense A/c assuming the final settlement was made in cash.

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Particulars Debit Credit Opening Balances Debtors Senthil s 1 50 000 Creditors Senthil …View the full answer


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Corporate Accounting

Corporate Accounting

ISBN: 9789353160739

1st Edition

Authors: Anita Raman, P. Radhika

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Question Details
Chapter # 5- ACQUISITION OF BUSINESS,,
Section: EXERCISES AND PROBLEMS
Problem: 7
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Question Posted: August 31, 2023 12:11:19
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