Cost of Goods Sold | 57‚000 | 32‚500 | Debtors | 7‚200 | 3‚000 | Inventories | 11‚400 | 5‚500 | Cash | 1‚500 | 800 | Other Current Assets | 4‚000 | 2‚700 | Current Liabilities | 16‚000 | 11‚000 | Compute the current ratio‚ quick ratio‚ and average debt collection period and inventory turnover for 2009 and 2010- State whether there is a favorable or unfavorable change in liquidity from 2009 to 2010. At the beginning of 2009‚ the company had debtors of Rs.2500 and inventory of Rs.3000.
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inconvenient to maintain all accounts into one ledger alone. Hence in such a condition the ledger is sub-divided into the following three ledgers: Trade Debtors / Customers / Sales / Sold Ledger: This ledger contains the personal accounts of the Trade Debtors to whom credit sales are affected. Here Trade Debtors word stands for only those debtors to whom goods are sold. Creditors / Suppliers / Purchase / Bought Ledger: This ledger contains the personal accounts of the Trade Creditors who supply the
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Contract can take place: a. Default of the debtor (mora debitoris) i. Explanation Mora Debitoris means that a debtor has failed to adhere to the contractual agreement in a certain time frame. Be it not making a payment or violating agreed conditions of the signed contract. There are two forms of this form of breach of contract that can be distinguished: Mora Ex Re: This occurs when a specific date is set on which the debtor must perform. If the debtor knowingly or unknowingly do not perform on
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INTRODUCTION INTRODUCTION TO LAW Law – means any rule of action or any system of uniformity 2 General Groups Law (in the strict legal sense) – promulgated and enforced by state Law (in the non-legal sense) – not promulgated and enforced by state General Divisions of Law Divine Law o Law of religion and faith; concerns itself with the concept of sin and salvation o Divulged to mankind by direct revelation o Sanction lies in assurance of certain rewards and punishments in the present
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default.-Sec. 126. P lends Rs. 5‚000 to Q and R promises to P that if Q does not pay the money R will do so. This is contract of guarantee. Q is called the Principal Debtor‚ P the Creditor‚ and R the Guarantor or the Surety. Classification Contracts of guarantee may be of three types : (1) for payment to the Creditor to the Principal Debtor by the Guarantor ; (2) payment of price for goods sold‚ and (3) Fidelity guarantee i.e. to discharge the liability of a person for good conduct of a service-holder
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English Law. 1.2:OBJECTS OF INSOLVENCY LAWS: Prior to the enactment of insolvency legislation‚ a debtor who was unable to pay debts was regarded as sort of criminal or offender and was‚ in almost every case‚ sent to jail. No distinction was drawn between honest an unfortunate debtors on the one hand and dishonest debtors on the other. Insolvency laws were passed to relieve the honest debtor‚ who surrenders for distribution amongst his creditors the property which he owns at the time of bankruptcy
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parties with regard to all or any of the matters in controversy in the suit‚ thus creating substantive rights in favour of the decree-holder. However‚ lately it has been seen that instead of following the terms and conditions of the decree‚ judgment-debtors have been placing a number of obstacles in the way of a decree-holder. In fact‚ such a trend has become so prevalent that it has forced the Supreme Court to opine that ‘the difficulties of a litigant begin when he has obtained a decree’. Conscious
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by enforcing the decree against the unsuccessful party through any one or more of various modes of execution as prescribed by law. The successful party is called a decree holder or judgment creditor while an unsuccessful party is called a judgment debtor. A decree is executed by the court which passes it or by court which the decree is sent by former execution. The court that passes the decree is entitled to determine any question relating to execution‚ discharge‚ satisfaction‚ of the decree that
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which can be determined through this ratio. I. DEBTORS RATIO It represents the number of days required or taken to collect the credit sales which reflects the collection strategy of the company. It measure the collection period of account receivables Debtors Debtors Ratio = --------------------- Credit Sales 2011-12 2012-13 2013-14 Debtors 3340.85 1537.42 1651.31
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management is one of the most important aspects of the organization‚ as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management. Debtors occupy an important position in the structure of current assets of a firm. They are the outcome of rapid growth of trade credit granted by the firms to their customers. Trade credit is the most prominent force of modern business. It is considered
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