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Debtors cost

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(Querist)
02 November 2013 dear sir i am student of ipcc nov13 when i read fm in working capital i have confusion over calculation of debtors my confusion is whether it calculate on total credit sale cost or selling price please confirm asap thanks in advance
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CA Vijeta Verma

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CA Vijeta Verma (Expert)
02 November 2013 See,while evaluating the credit policies you have to consider your investment in debtors i.e. the cost & not the profit element.

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