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Debtors/ Receivables Calculation

Financial Management

In Chapter 10, FM, G-2, Book back problems like 4, 6,7 Debtors have been calculated after finding Cash cost of sales and then applied-- Cash cost of sales* debtors period / 360, but in some problem like before 4,6, 7 they had calculated Debtors value as Sales * Debtors period/360.. why such treatment in that such sums alone... Please tell me if anyone know.

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Saravana Perumal

Saravana Perumal

CA Inter

2K+

18-Apr-23 19:57

202

Answers (7)

Both are acceptable. It depends on the information given in question.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

19-Apr-23 15:26

CA Suraj Lakhotia Admin

Both are acceptable. It depends on the information given in question.

Thank you sir


Thread Starter

Saravana Perumal

Saravana Perumal

CA Inter

2K+

19-Apr-23 15:27

CA Suraj Lakhotia Admin

Both are acceptable. It depends on the information given in question.

This is for exams only :)


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

20-Apr-23 16:53

Usually Credit sales is the most appropriate to use for the computation .. but in case the information is unavailable cost of sales may be used alternatively.. it is advised to mention the same as a note in the examination while solving the problem


aditya yanamandra

aditya yanamandra

Faculty

20-Apr-23 18:39

aditya yanamandra Faculty

Usually Credit sales is the most appropriate to use for the computation .. but in case the information is unavailable cost of sales may be used alternatively.. it is advised to mention the same as a note in the examination while solving the problem

But in such question there is sale mentioned. But still we had taken from Cost of cash sales that's why I'm little bit confused


Thread Starter

Saravana Perumal

Saravana Perumal

CA Inter

2K+

20-Apr-23 19:01

Thread Starter

Saravana Perumal

But in such question there is sale mentioned. But still we had taken from Cost of cash sales that's why I'm little bit confused

ICAI has unfortunately used incorrect method even when information is given. Please use credit sales and state your assumption clearly. If you have a time left after finishing the full paper , you work out the solution based on alternate assumption as well


Sriram Somayajula

Sriram Somayajula

Admin

20-Apr-23 19:12

Haan sir thank you


Thread Starter

Saravana Perumal

Saravana Perumal

CA Inter

2K+

20-Apr-23 20:14

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