the question given is ( based on retirement of partners. IPCC Accounts module pg.14.37):
Bills receivable dishonoured Rs.5000 on 31-12-2008 but not recorded in books. Dishonour of bill was due to insolvency of customer. Debtors is Rs.50000.
Here, 1 implication would be that 5000 shall be deducted from bills receivable a/c. (given in book)
Whether debtors a/c in balance sheet would also be affected? Is it also a bad debt arising? (No effect for this is given in book. I m not undersatnding as to why it would have no effect on debtors.)
Kindly reply soon.
CAclubindia
