Page 16 - Chapter-11.pmd

452 Accountancy

Total Debtors Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
2013
Apr. 01 Opening balance 65,000 Cash received 3,02,000
Bills receivable 20,000 Discount allowed 8,000
(dishonoured)
Sales (balancing 3,53,000 Sales return 17,000
figure)
Bad debts 14,000
Bills receivable 47,000
(transferred from
bills receivable
2014 account)
Mar.31 Closing balance 50,000
4,38,000 4,38,000
(Working Notes)
With the preparation of total debtors account and total bills receivable account, the net sales
will be computed as follows :
Net Sales = Cash Sales + Credit Sales – Sales return
= Rs. 2,25,000 + Rs. 3,53,000 – Rs. 1,7000
= Rs. 5,61,000

Illustration 5

Mr. Om Prakash did not keep his books of accounts under double entry system. From the
following information available from his records, prepare profit and loss account for the
year ending on March 31, 2014 and a balance sheet as at that date, depreciating the
washing equipment @ 10%.

Summary of Cash
Dr. Cr.
Receipts Amount Payments Amount
Rs. Rs.

Balance b/d 8,000 Cash purchases 14,000
Cash sales 40,000 Paid to creditors 20,000
Received from debtors 30,000 Sundry expenses 6,000
Cartage 2,000
Drawings 8,000
Balance c/d 28,000
78,000 78,000

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