Jan. 20 Total cash sales for the day amounted to Rs. 17,500 in full settlement instant of Rs. 70000 2) Credit purchase of goods Rs. (iv) Purchase of Machinery for cash Rs.20,000. (i) Commenced business with cash ₹ 60,000. PAYMENT TO CREDITORS/SUPPLIERS (a) All reasonable steps must be taken to ensure that payments made by the Municipality are made direct to the person that supplied the service or to whom the payment is due, unless otherwise agreed upon as approved by the Chief Financial Officer. Debt collectors are more likely to negotiate a settlement , often at much lower amounts, if they think there’s a chance that they may not be able to collect at all. Simply, creditors make money by charging interest on the loans they offer their clients. Note: Cash goes out of the business so. The solution for this question is as follows: S. No. Whether the trustee will void a monetary payment will depend on: the creditor’s relationship to you; how much you paid the creditor, and; when you made the payment. (v) Depreciation on machinery Rs 2,000. (4) 8. (iii) Payment made to creditors in full settlement Rs.17,500. It’s possible that none of your creditors will accept a full and final settlement. <>/Metadata 950 0 R/ViewerPreferences 951 0 R>> All the solutions of Accounting Equation - Accountancy explained in detail by experts to help students prepare for their CBSE exams. (v) Depreciation on machinery ₹ 2,000. Answer June 20 Paid Rs. Recording of Transactions – I (d) Purchase of machinery for cash ₹ 20,000. If the question is silent, we assume that sales and purchases are made in cash mode. (ii) Credit purchase of goods Rs 18,000. (iii) Payment made to creditors in full settlement Rs 17,500. Solution of Question No 9 Chapter No 5: – (a) A had a capital of ₹ 75,000 on 1st April, 2017. It was decided that A and B would take over the following assets at the following sums: A and B decided to … (b) Creditors were ₹ 16,000. Here’s what you need to know about making payments to creditors when you want to improve your credit score.. Related: Choose the Right Credit Card for You How Payments Affect Your Credit Score June 20 Bought a ‘Table Fan’ for Rs. \"Settled in full\" means you negotiated with the lender to pay off some amount less than what he gave you. Well, by definition, a creditor is someone to whom money is owed. Cost savings of paying off card debt Illustration 5: He commenced business with a capital of Rs 39,000 on 1st January 2003 and made a total profit of Rs … b. 5,000 for cash less 20% trade discount and 5% cash discount.January 4 Received Rs. Free PDF download of TS Grewal Accountancy Class 11 Solutions Chapter 5 Journal solved by Expert Teachers as per NCERT (CBSE) Book guidelines. Keep proof of payment. (k) Completed services of a client for Rs. An insider is a relative, friend, or business associate. (ii) Purchased goods for cash Rs 20,000 and on credit Rs 30,000. [b] Creditors were Rs 16,000. (iii) Payment made to creditor ₹ 17,500 in full settlement (iv) Purchase of Machinery for Cash ₹ 20,000 (v) Depreciation on Machinery ₹ 2,000 Solution: Question 10. They accepted Machinery valued at Rs 18,000 in settlement of their claim. All the solutions of Accounting Equation - Accountancy explained in detail by experts to help students prepare for their CBSE exams. Total cash lodged at the bank Rs. Make your payment by CROSSED CHEQUE only; As soon as the payment is done, close this credit card account by giving writing instructions saying w.r.t Final Settlement, I have cleared all the dues and want this account to be closed. ?`�(� %~��O�����S ᧪)t�2�8¯�cx��VSM��J���Ղ6�W^�w�3��@Zn��6Y�qc�2jF3)0� �����6��m�>��B,$0���� c. Rohit had given a loan of Rs.70,000 to the firm which was duly paid. …, There are two departments M and N. 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