On the basis of following data a Company rsquo s closing debtors will be Credit revenue from operati...........

On the basis of following data, a Company’s closing debtors will be:

Credit revenue from operations Rs9,00,000; Average Collection period 2 months; Opening debtors are Rs15,000 less as compared to closing debtors.

Rs1,42,500

Rs1,57,500

Rs1,80,000

Rs75,000

- Credit Revenue from Operations: The company’s revenue from operations on credit is Rs 9,00,000.

- Average Collection Period: It takes 2 months on average to collect payments from debtors.

Average debtor = \( \frac{9,00,000}{12} \times 2 = Rs 1,50,000 \).

Let opening Debtor be X

1,50,000 = (X + X + 15,000)/2

3,00,000 = 2X + 15,000

X = 1,42,500 opening debtor

Closing debtor = 1,57,500

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