Question No. 1 to Question No. 3 :

The following information are available for Max. Ltd.,

Monthly sales in the year 2020 :

April - Rs. 1,00,000

May - Rs. 1,20,000

June - Rs. 90,000

July - Rs. 1,05,000

August - Rs. 1,25,000

20% of sales are made in cash.

Debtors are allowed two months credit but receive 5% cash discount if they pay off their dues within

the month next to the month of sale.

4/5th of the debtors normally clear their dues to avail the cash discount.

Remaining debtors pay on the due date.

Question No.- 1.

Collection from debtors for the month of June is,

(a). Rs.72,000.

(b).Rs.76,800.

(c). Rs.88,960.

(d).Rs.72,960.

Question No. - 2.

Collection from debtors for the month of July is,

(a). Rs.57,600.

(b). Rs.73,920.

(c). Rs.54,720.

(d). Rs.84,000.

Question No. - 3.

Collection from debtors for the month of August is,

(a). Rs.78,240.

(b). Rs.63,840.

(c). Rs.67,200.

(d). Rs.1,00,000.