(ix) Pooja and Meher are partners in.a firm. They admit Rati into the firm on the following terms:

(a) Unrecorded Debtors of ₹ 1,000 to be brought into the books.
(b) Provision for doubtful debts to be created @ 5% on Debtors.

The recorded debtors in the Balance Sheet of Pooja and Meher on the date of Rati’s admission were ₹25,000.

What will be the net debtors to be shown in the Balance Sheet of the reconstituted firm?

Solution