Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Nominal Ledger for the accounts of the individual customers, but with total figures. A proforma of a Total Debtors Account is shown below: Rs. Jan.
Nominal Ledger for the accounts of the individual customers, but with total figures. A proforma of a Total Debtors Account is shown below: Rs. Jan. 1 In the Nominal Ledger Total Debtors Account Rs. To Balance b/d Dec.31 By Cash received from Drs. To Credit Sales By Bills Receivable received To Bills receivable dishonoured By Sales Return To Sundry charge debited to By Allowance to customers customers By Bad Debts w/off By Balance c/d The balace shown by the Total Debtors Account on any date should agree with the total of the debit in Debtors Ledger, at that date. If not, there is some mistake either in the Total Debtors Account or the individual accounts. Total Creditors Account: It is nothing but a summary of the individual creditors accounts prepared in the General Ledger. A proforma of the Total Creditors Account is given below: u? Rs. In the Nominal Ledger Total Creditors Account Rs Dec 31 To Cash paid Jan. 1 By Balance b/d To Bills payable accepted Dec.31 By Credit Purchase To Purchase Return By Bills Payable dishonoured To Discount Received To Balance c/d The Credit Balance of the Total Creditors Account on any date should agree with the total of the credit balance in the individual creditors accounts as found in the Creditors Ledger. If so it may be concluded that there is no mistake in the total creditors account or in the individual creditors accounts. Illustration 3 From the following information prepare (1) Total Debtors 'Account and (2) Total Creditors' Account Rs. Jan 1, 1998: Balance of Sundry Debtors 32,000 Balance of Sundry Creditors 37,000 June 30, 1998: Credit Purchase 9,000 Credit Sales 19,600 Cash Sales 1,500 Cash Purchase 1.000 Paid to Creditors 19,750 Discount allowed by them Cash received from debtors Discount allowed to them Bills payable accepted Bills receivable received Returns Inward Returns Outward Rebate allowed to debtors Rebate allowed to creditors Provision for doubtful debts Bad debts 650 15,600 400 3,000 6,000 1.750 1,200 550 300 320 900
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started