While preparing the Comparative Balance Sheet, Creditors showed absolute change (increase) on 31st March 2021 for ₹3,00,000 and the Percentage change on the above-mentioned date was 20%, Creditors on 31st March 2020 and 31st March 2021 were......
Answer & explanation
Correct answer: option 1
The correct answer is option 1-
On 31.3.2020 Creditors ₹15,00,000
On 31.3.2021 Creditors ₹18,00,000
20%= ₹3,00,000
Creditors in 2020,= 3,00,000 x 100/20
= ₹15,00,000
Creditors in 2021 = 15,00,000 + 3,00,000
= ₹18,00,000